Good rail network but poor roads
New international airport
The main seaport is in poor condition.
Labour
Unskilled labour available. A lot of training needed for jeans production
No unions in most industries
Wage rates: very low
Comments
The country has a military government. Bribery is common. Political problems: the people in the north want to become an independent state. The goverment will contribute 30 % towards the cost of a new factory.
COUNTRY B
Economy
Growth:1.5%
Inflation rate: 0.5%
Interest rates: 8% -10%
Unemployment rate:3%
A modern industrial country with many manufacturing industries
Transport
Has a fully integrated road and rail network
International airport
No seaport
Labour
Not a lot of skilled labour available
Strong unions
Wage rate: high
Comments
The country has a stable government. It is a member of a large trading group. There are strict new laws on pollution. There are no tax incentives for building new factories. Business tax is very high.
COUNTRY C
Economy
Growth: 8%
Inflation rate: 10%
Interest rates: 4% - 6%
Unemployment rate: 12%
Currency exchange rate: unstable
Transport
Good transport around the main seaports
Small but well-managed airport
Road network needs investment
Labour
Not much skilled labour available
Very strong unions in the clothing industry
Wage rates: low but rising fast
Comments
The first free elections for a democratic government were held last year. There are limits on the profits which companies can take out of the country. Not much paperwork required for importing and exporting goods. There is a strong protest movement against international companies, which are accused of harming firms.
COUNTRY D
Economy
Growth: 4%
Inflation rate: 5%
Interest rates: 8% - 12%
Unemployment rate: 12%
Government encourages the privatisation of industry
Transport
Road and rail network is in poor condition
Government has started a big investment programm for the transport system. It will take 5-10 years to complete.
Labour
Large supply of skilled workers, but they are not used to working long hours
Strong unions
Wage rates: low
Comments
A lot of paperwork is required for new businesses. There are problems with air and water pollution. Profits are tax free for the first three years after a factory has been built. Companies must pay 5% of their profits into a fund for training their workers.
UNIT 4. CHANNELS OF DISTRIBUTION
