CASE STUDY: MARCIA LEE JEANS

A US clothing company wants to build a factory overseas. You will analyse the
economies of four countries and propose the best place to build it.

Stage 1: Background
- Ask your friend to read the background information for key points and complete
the table.
Company MARCIA LEE JEANS
Based in
Price range
Segment
Factories
Costs
Wants to expand into
New factory-
Number of workers
Source of denim
New factory-location

Stage 2: Discuss the four countries and rank them in order of suitability as a location
- Introduce information of each country.
 - Ask your friends to work in pairs to compare the benefits and disadvantages of
each country
Country A Country B Country C Country D
Economy: Lot of debt,
General Trying to
modernise
Growth rate low
Inflation rate average
Interest rates high
Unemployment rate high
Transport Good road
and rail,
Airport
No seaport
Labour: skilled No No No Yes, but short hour
workforce
Unionised No Yes Yes Yes
Wages Very low High
Other comments: Lot of paperwork,
Business Pollution problems,
Tax-free profits for
first three years,
Part of profits into
training fund
general
- Class discussion: decide which is the most suitable location for the new jeans
factory.