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2. Read this article & answer the questions below

Manage Operational Complexity

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For businesses looking to locate or expand in cities, operating costs are high and rapidly growing. Emerging-market megacities such as Shanghai and Mumbai are already home to some of the priciest commercial real estate in the world. In built-up areas, infrastructure can get congested easily, further raising the costs and unpredictability of doing business. Some Latin American and Asian cities are beginning to lose their power as engines of prosperity because they are clogged with traffic, scarred by urban sprawl, polluted and crime-ridden. Any visitor to Jakarta is familiar with the traffic gridlock that results from 1.5 million vehicles using roads designed for 1 million. Traffic congestion alone costs Indonesia's capital city an estimated $1 billion a year in lost productivity. In Mercer's Annual Cost of Living survey, the most expensive city for business isn't San Francisco or Tokyo. Rather, it's Luanda, Angola, where a dearth of quality office space and living quarters, poor public services and supply chains, and underdeveloped business and physical infrastructure impose huge costs on corporations.

This extract is from Dobbs, Manyika, & Woetzel, 2015, pp. 28-29

Comprehension Questions:

  1. Why are business operating costs increasing in cities?

  2. How many cars was Jakarta's roads designed to deal with?

  3. How much does congestion cost Jakarta each year?

  4. What is the most expensive city to do business in? Why?

3. Conversation questions

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  • Have you ever been to any of the cities that are named in the above text?

  • Does your city have a lot of traffic?

  • Do you think that it is easy to do business in your country?

  • If you could live in any city in the world, which city would you choose?