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 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