Read the following conversation and answer the question.

W: Well, the main activities in the region were historically steel and paper processing, I think.

M: Yes, but I'm not quite sure about the status of those industries now. Couldyou tell us something about that?

W: Yes, of course. In fact, they are less significant, but steel-related manufacturing still accounts for 44% of industrial activity. So it's still very important. In fact, 80% of Spain's machine tools are from the Basque Country. As for paper processing, there's still a little. But it's no longer what it once was in the region. So, is that clear?

M: Yes, thanks.

W: Now, to get back to what I was saying, there's a lot of unemployment as wellas geographical problems in the region.

M: Sorry, Victoria. What do you mean by geographical problems?

W: Well, what I mean is the area is very hilly, mountainous in parts. So there used to be transport problems, now though there are new train links and betterroads, but it may be that some smaller towns inland remain not very well connected, is that OK? Does that make sense? When we talk about specific location suggestions for the factory, we'll see this in more detail, so we'll come back to this question, OK?

M: OK, right.

W: So I was about to say something about the work force in the region and thelevel of training and education. In general, it's very good and improving.

Question: What problem hinders the region's development? 

- Transport problems.

- Shortage offunding.

- Lack of resources.


Transport problems.