Business & Finance Investing & Financial Markets

Impacts Of Investing To Landmines And Cluster Bomb Manufacturers

Definition: Landmines are weight- pressure triggered explosive devices used as a weapon to damage humans or to disable by means of blast or fragments.
The devices are being planted on the ground to conceal from invading forces and once pressure is applied by stepping into the trigger, it will explode and kill anyone within the blast perimeter.
Landmines are also an effected tool to slowdown or damage tactical vehicles in a prohibited zone.
Cluster bomb on the other hand is an integration device that has a capability to disperse smaller bombs once exploded.
Smaller bombs can be made up landmines and explosive ammunitions.
It serves the same purpose as the landmine but only difference is it can be use in two ways, by air-dropping or to plant on the ground.
Damages: The use of landmines and cluster bombs killed at least 20,000 every year.
Unexploded small bombs and landmines can harm civilians it not removed from the ground.
This is because idle bombs still have possibilities of exploding if being toyed because it could reanimate once the trigger or needed pressure was applied.
The main concern here is the high occurrences of civilian loses of lives because of the failure of clearing them out of the blasting area.
Health wise it can also be hazardous because of the chemicals being added to the gunpowder inside the bomb, in fact poison is one of the options to make a cluster bombs and landmines.
Needless to say that with a poison inside it could not only harm the person handling it, but the contained poison may also go airborne and inflict health damages to the surroundings and living inhabitants.
The International treaty: The use and manufacturing of landmines was already banned considered unlawful as mandated by the agreement signed by 158 countries in 1997.
The treaty encloses that the use, stockpiling, Production of Anti-personnel landmines including transferring import and export, whoever defied the rules of the treaty is punishable by international laws.
Being said that, getting into manufacturing business of such is considered as illegal and again by law whether locally or internationally renders state punishment.
In other words engaging in manufacturing landmines constitutes violation of the treaty and prevailing laws on illegal trade.
Consequential impact: The aforementioned legality of landmine and cluster bomb manufacturing already suggests the impacts of the consequences to any firm who wish to get into the business.
Reputation wise, the company would get lawsuits and can be banned from trading organizations as lawsuits filed against a company attributes degrading factors.
In addition, a firm investing in the mentioned manufacturing business might also get involved in violation cases and will be answerable to the accusations.
Again, any involvement to illegal activities directly or indirectly shall be subjected to negative attributes as far as reputation is concern.
Financial Impact: The chain effect of consequences would lead to financial declination of a firm.
Lawsuits deprive a company from gaining more investors as credibility has faded.
As the expenses to cover loses out balanced a company's cash flow, a corporate budget deficit would result to bankruptcy and eventually lead to foreclosure.
Conclusion and Recommendations: To summarize the view on manufacturing of cluster ammunition (cluster bomb) and landmine, it is clearly constitutes an inevitable effect at large.
It can destroy a company's reputation once denounced as a supporter of illegal trades.
The firm would also be engaged in numbers of violation complaints of local and international laws making them a least competitive and non credible.
It is strongly recommended to decline incoming agreements involving the manufacturing of aforementioned explosives.
If in case currently on an ongoing commitment it is best to terminate the contract, if concern about getting a breach of contract lawsuit, the firm can rely on the argument of non legality of the trade practice and as such would render the firm non association to any manufacturing firm engaged into landmine and cluster bomb making.
Another suggestion is to pull out investment and divert attention to a legal trading business with lesser risk and higher productivity.
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