| 1 air freight 2 despatch rider 3 shipping line 4 courier service 5 rail freightoperator 6 road haulage contractor | aa business specializing in rapid delivery transportation of small items, usually by van or motorbike. b a company specializing in moving heavy goods and raw materials by train. c the business of moving large quantities of goods by air. d a company specializing in transportation of goods by sea, typicallyusing containervessels(large ships designed to transport goods) based at container ports. e a company that transports goods by lorry. Major road distribution networks link so-called dry port facilities, often located near major airports and road junctions. fsomeone who works for a courier company delivering small items by motorbike. |
Case study
Marcia Lee jeans
Background
Marcia Lee Jeens is based in New York. Its brand is well known in the United States. The jeans sell in the price ranges and appeal to fashion conscious people aged 15 to 40. They are distributed in major department stores throughout the country.
At present, the jeans are made in the US by a number of factories on the East coast, none of which are owned by Marcia Lee Jeans. Competition in this segment of the market is strong, so the company has to keep costs as low as possible in order to remain profitable.
In the next 10 years, Marcia Lee plans to expand in Europe and South east Asia so that it becomes a global company. To do this, it has decided to build its own factory in an overseas country. The factory will have approximately 2,000 workers who will produce the jeans. These workers will be recruited locally. Denim, the raw material which is used to make the jeans, will be imported from several countries.
The company is considering four countries as a location for the factory. There is some information about each country. They are code named A, B, C, and D.
Task
You are members of the planning committee which must choose a location for the new factory.
1. Work individually. Study the four countries and rank them in order of suitability as a location.
2. Work in small groups. Discuss the advantages and disadvantages of each location.
3. Meet as one group with one of you leading the discussion. Decide which is the most suitable location for the new jeans factory.
COUNTRY A
Economy
· Growth: 2% per year
· Inflation rate: 5%
· Interest rates: 10%-15%
· Unemployment rate: 25%-30%
· The country has a lot of debts and is trying to modernise its economy.
