1. Dow Chemical in Indonesia Case
... and in Dow's US and European operations prior to start up. Dow asserted in its proposal that the project offered only marginal returns to the company due to some peculiar characteristics: (1) it was heavily capital intensive, (2) the manufacturing cost had a high fixed-cost element, and (3) satisfactory returns would be obtained only when the levels of sales enabled its plants to ... entered the market. In 1977, it was estimated an oversupply of petrochemicals at about 20% above demand. In Southeast Asia a group of Japanese companies were considering the construction of a petrochemical ...
- Word Count: 1101
- Approx Pages: 4
- Grade Level: Undergraduate