Economic Theory - Cost of Production Case study

Economic Theory - Cost of Production - caseful Study ExampleOn one side, where the defecateion of the full treatment would give employment to over 12000 peck of the area and would expand the Indian railroad car market by 65%( machinist.in.2008), the construction of the plant would endpoint in a lot of resistance from the local farmers as they would lose their farmlands. Tata Motors would be left with however two options, either to continue with the construction of the plant against all the opposition or close go through the project losing $340 million investment which has already been made in the project ( .Tata Motors developed a car Nano which is considered to be the cheapest car in the world. In order to mass produce the car, Tata chose the regulate of Singur to construct its plant but the decision invited a lot of opposition from the local farmers and political parties of Singur as they claimed that Tata Motors, with the help of organisation was taking their lands forci bly. The company is faced by the following external forces which are hindering its decision to construct the plantSocial forces The local farmers are the one biggest force which is a hindrance in the evolution of the plant. The society is against the development of the plant, in spite of the fact that it would provide employment opportunities, because they are not inwardness as they believe that their lands yield been forcibly taken by the company to build the plant. Although Tata Motors pose claimed that they have provided them with sufficient amount of compensation for the lands but the farmers are not convinced. The opposition is so intense that the farmers have damaged the factory building and have intimidated the employees of the plant in order to prevent them from workings (Business Standard .2010).Political forces The other threat which has put fuel to the fire is the political agency of the district which has joined hands with the local