Globali_.:i. micsChemicalcompanieslove the U.S. again 16Brazilians may haveto choose betweensoccer...

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Globali_.:i. micsChemicalcompanieslove the U.S. again 16Brazilians may haveto choose betweensoccer and staples 17Why China's debtomb won't explode18Hungarians set upshopin London 18Inflation statistics asworks of fiction 19 July 29 - August 4, 2013                                                                                                                           XXXXXXXXXXTop onion XXXXXXXXXXproducing XXXXXXXXXXcountries    The nation fights alosing battle againstinflation-particularly in the price of a culinary favorite"Higheronionpricescreatea hugenegativesentiment,especiallyforthe poor"

Robert · Accepted Answer

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About the article, “Chemical Companies Are Rushing to the U.S.” 
3. According to the article what made scores of chemical companies to build or expand the plants 
in the U.S.? 
 Answer – According to the information given in the article, the reason provided for resurgence 
of the U.S Chemical industries by expanding their manufacturing in the country is due to the 
availability of natural gas. There arises the shale boom in the country which leads to best 
utilization of resources to produce chemicals at very low cost located outside Middle East 
countries. It attracted high capital investment from foreign investors as the prices of natural gas 
fell down by three-fourths since 2005. It acted as the boon for producers of chemicals as they 
utilize natural gas as the raw material. Also, natural gas is highly used by factories that indulged 
into power generation. Due to rise in production activities in these industries, there was rise in 
the employment generation by about 29 per cent which drastically fell down during the previous 
three decades. 
As a result, there was surplus of chemical production in U.S during the year 2012 by $800 
million which had happened after about 11 years. The main reasons were extremely high flow of 
foreign investments like Sasol from South Africa invested around $21 billion at nine plants 
located at Louisiana. There natural gas was used to convert it into diesel formation and plastics 
for further production of final goods. Similarly, another Russian company named as EuroChem 
is engaged in setting up ammonia plant in Louisiana due to accessibility to Midwest Farms. 
SABIC also expand its petrochemicals plants mainly in Louisiana and Texas where no 
investment is required over infrastructural development. It reduces overall cost of production due 
to less initial investment encouraging them to set up their manufacturing units in U.S. rather than 
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their own home country. Hence, easy accessibility along with reduced cost of production is the 
prime reasons for setting up new plants by foreign firms and industries into U.S.
4. Chemical manufacturing business is basically a process business which require a large initial 
investment build a chemical plant. In other words, chemical manufacturing business requires 
high fixed costs. Therefore, tt is natural that for the first several years, firms continue to incur 
loss.

Global i_.:i. mics Chemicalcompanies love the U.S. again 16 Brazilians may have to choose between soccer and staples 17 Why China's debt bomb won't explode18 Hungarians set up shopin London 18...

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