BackgroundTaka Shimizu Cycles (TSC) is based in Nagoya,Japan. Its brand is well known in Japan and in theUnited States. The company sells four models ofbicycle:• road bicycles for the non-enthusiast, generaluser. Price: US$100–$300• touring bicycles for serious cyclists who travellong distances. Price: US$600–$3,000• racing bicycles for professional cyclists.Price: US$1,000 upwards• mountain bicycles for energetic, adventurous,keep-fi t cyclists. Price: US$100–$250Note: The company is about to launch a newbicycle for children, which has great salespotential.In the next 10 years, TSC plans to expand in Europeand South-East Asia so that it becomes a globalcompany. To do this, it has decided to build its ownfactory in an overseas country. The factory will haveapproximately 2,000 workers, who will produce theframes for the cycles locally. Other components, suchas saddles, gears, chains, tyres, etc., will be imported. Workers will be recruited locally and trained, ifnecessary, at a special school set up for that purpose.The company is considering four countries as alocation for the factory. There is some informationabout each country on page 73. They are codenamedA, B, C and D.You are members of the planning committee, which must choose a location for the new factory.1 Work in pairs. Discuss the advantages and disadvantages of each location.2 Work in small groups. Discuss the four countries and rank them in order of suitability as a location.3 Meet as one group, with one of you leading the discussion. Decide which is the most suitablelocation for the new cycle factory.
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