1. Dow Chemical in Indonesia Case
In addition, Indonesia would gain technology for operating the plants. ... 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 operate near capacity. ... In Southeast Asia a group of Japanese companies were considering the construction of a petrochemical plant in Singapore, which would post great competitive pressure on the In...
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- Grade Level: Undergraduate