Locating an American Plant in So. Africa

Justification for a policy opposing plant location in the Republic of South Africa (RSA) is provided in five contexts. The contexts of justification are domestic violence, international violence, the internal legal environment, the external legal environment, and political uncertainty.

Domestic violence in the RSA involves (1) acts directed at the black population generally by the elements of the white population, and by the government of the RSA, (2) acts directed against the white population generally by elements of the black population, (3) acts directed against the government of the RSA by elements of the black population, and by elements of the white population, and (4) acts directed at elements of the black population by other elements of the black population, and by the government of the RSA. In the early1990s, the most intensive domestic violence involves clashes elements of the country's black population; however, the volatility of the domestic environment is such that violence could escalate overnight in any one of the other domestic violence relationships.

American firms locating plants in the RSA must establish relationships with the government of the RSA, the nation's business community, which is predominantly white, and the nation's labor community, which is predominantly black. Such actions on the part of an American firm cannot but engender animosities agai