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"The Operator of the Tunnel That Links Britain and France

question 6

Essay

"The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply in 2004, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, Jean-Louis Raymond, blamed cut-throat competition from budget airlines." (news story, January 2005)
A) If Mr. Raymond is correct, are the services of airlines and Eurotunnel substitutes or complements?
B) Use demand and supply analysis to explain how lower airfares between Paris and London impact the market for the shuttle services of Eurotunnel.

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Definitions:

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The measurement and management of employees staying with or leaving an organization, impacting its stability and performance.

Employment Equity Act

Legislation aimed at promoting equal employment opportunities and addressing discrimination in the workplace.

Aboriginals

Indigenous peoples who are the original inhabitants of a region or country, often with cultures predating colonial influence.

Visible Minorities

Individuals belonging to a racial or ethnic group that is different from the majority population in a given society, and may be subject to different treatment or discrimination.

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