Foreign share in U.S. chemicals rises again

Abstract

Foreign companies have long invested in the U.S. chemical industry. The reasons they give include the large homogeneous market represented by the U.S., an educated work force, and a relatively stable labor-management relationship compared with those in many other countries. According to the latest survey of foreign investment in the U.S. by the Commerce Department, ownership of the U.S. chemical industry by overseas companies increased almost 7.5% last year from 1992. This brings book value of those foreign-owned assets to $57.7 billion. The government calculates book value on a historical cost basis—the price paid for the assets at the time of their purchase rather than their value today. According to the Commerce Department data, of all U.S. industry, the chemicals and allied products industry is second only to wholesale trade in terms of foreign investment. And among manufacturing industries, it has by far the largest foreign investment, almost double that for second-place machinery manufacturing. ...