Greenfield manufactures furniture. The company imports wood and other raw materials from several countries. Marcos is the Managing Director of Greenfield. Marcos said that his company was affected by import quotas and changes in exchange rates. He said: ‘Greenfield has to buy its raw materials from other countries as there are no timber (wood) resources in our own country.'

1. (a)What is meant by ‘import quota'?[2]
2. (b)Identify two ways that Greenfield's business might harm the environment.[2]
3. (c)Identify and explain two ways in which changes in exchange rates could cause problems for Greenfield.[4]
4. (d)The Government in Greenfield's country is introducing consumer protection laws. Identify and explain three ways in which Greenfield's business could be affected by these new laws.[6]
5. (e)Greenfield's management is thinking of expanding the business by taking over another furniture manufacturer. Do you think this is a good idea for Greenfield? Justify your answer.[6]