U.S. companies obtain political risk insurance from a small independent
government agency for their overseas ventures:

   http://www.opic.gov/
   The Overseas Private Investment Corporation (OPIC)

  "The Overseas Private Investment Corporation (OPIC) is an independent
   self-sustaining U.S. Government agency that sells political risk
   insurance and project financing to encourage private investment by
   U.S. companies in some 140 emerging economies around the world..."

OPIC's political risk insurance covers both civil and international war:

   http://www.opic.gov/insurance/welcome.htm
   OPIC Insurance Main Page

  "OPIC'S OBJECTIVE:
   To promote and facilitate U.S. investment in emerging market economies
   by helping businesses manage risk.

   Expertise

   "Interest in political risk is growing rapidly, driven by investors'
   reluctance to invest in emerging market debt in the aftermath of the
   financial crisis in Asia, Russia and Latin America. Although the
   crises were not caused by any sovereign exchange controls, investors
   are nevertheless seeking additional coverage for sovereign risk."

                                                      - Standard & Poor's

   Risk (risk), n. 1. Exposure to the chance of injury or loss; a hazard
   or dangerous chance. Risk in today's increasingly global marketplace
   can take many different forms. Risk is a very real factor in business
   and investor decision making, and managing that risk is paramount to
   the ultimate success or failure of any international activity. Whether
   it is the expropriation or nationalization of your assets or losses
   that result from politically motivated violence such as civil or    <<===
   international wars, these risks affect businesses across the globe  <<===
   every day. OPIC Political Risk Insurance provides the security and
   peace of mind necessary to pursue opportunities in emerging markets,
   places where the rules of the game can change drastically and
   suddenly."

If Pakistan was to drop a nuclear device on Bangalore, India, the U.S.
would suffer a major financial crisis. OPIC's $ 4 billion reserves
would not be sufficient to pay the claims from GE, Amex, Sun, Microsoft,
MasterCard, Ford, GM, Oracle, HPQ (new H-P), Intel, Motorola, Accenture,
EDS, IBM Global Services,  PricewaterhouseCoopers et.al., all of whom
have facilities in Bangalore.

Anyone thinking that an Inda/Pakistan conflict would reduce offshore
outsourcing for very long should think again.  Some U.S. companies are
already relocating THEIR jobs to other countries such a China, Russia,
Vietnam, Brazil, Romania, et.al.

Some of the Indian IT firms such as Tata Consulting Services, have
operations in other countries (URL wrapped to two lines):

   http://www.siliconindia.com/tech/
   tech_pgtwo.asp?newsno=15021&newscat=Technology
   TCS says sets up software unit in Uruguay

  "India's largest software exporter, Tata Consultancy Services (TCS),
   said on Monday it had inaugurated a global software development centre
   in the Uruguayan capital Montevideo.

   MUMBAI: Unlisted TCS, part of the $8.5 billion tea-to-telecoms Tata
   conglomerate, said in a statement it planned to invest $30 million in
   that centre and reach an employee strength of 500 in the next five
   years.

   TCS said the new centre would handle systems development, maintenance
   and outsourcing, apart from testing and certification of software
   produced by third parties, especially Microsoft.

   Among the TCS clients the new centre will serve are Compaq Computer
   Corp, Eli Lilly and American International Group.

   The global development centre at Uruguay is the ninth such overseas
   centre set up by TCS. The others are in the United States, the United
   Kingdom, Japan, Hungary, Canada and Australia.

   TCS, which had revenues of $689 million in the year ended March 2001,
   the latest figure available, employs more than 19,000 people and has
   over 800 clients including Lucent Technologies, Nortel and General
   Electric.

   It recently bagged a contract that industry sources estimated at more
   than $100 million spread over two to three years from General Electric
   Medical Systems -- possibly the largest software order won by an
   Indian company, although TCS itself had declined to confirm the size
   of the deal."

One of OPIC's largest benefactors is Enron...

   http://www.enrongate.com/news/index.asp?id=118898
   EnronGate: News Archives: Enron project was raised with India --
   White House says Cheney's lobbying justified

  "...While the Dabhol plant is one of the largest projects financed by
   OPIC, the agency is involved in $17 billion to $18 billion worth of
   projects in more than 100 countries, Spinelli said. Enron is among the
   largest benefactors of OPIC funding."


--Jerry Leslie   (my opinions are strictly my own)
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