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Казакова Е.В.,Дружкова С.Г. Деловой английский...doc
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Marcia Lee Jeans

Background

Marcia Lee Jeans is based in New York. Its brand is well known in the United States. The jeans sell in the upper 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 Southeast 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 three countries as a location for the factory. There is some information about each country. They are code named A, B, C.

COUNTRY A

Economy

  • Growth rate: 2% per year

  • Inflation rate: 5%

  • Unemployment rate: 25%-30%

  • The country has a lot of debt and is trying to modernize its economy.

Transport

  • 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 government will contribute 30% towards the cost of a new factory.

COUNTRY B

Economy

  • Growth rate: 1,5%

  • Inflation rate: 0,5%

  • 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 rates: 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 rate: 4%

  • Inflation rate: 5%

  • Interest rates: 8%-12%

  • Unemployment rate: 12%

  • Government encourages the privatization of industry

Transport

  • Road and rail network is in poor condition

  • Government has started a big investment programme 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.

Case study. You are members of the planning committee. Discuss the advantages and disadvantages of each location. Decide which is the most suitable location for the new jeans factory.

Text 6

Read the text and translate it in writing.