General Auto is a large global business. The management of General Auto are looking for a country where they might open a factory. Movements in exchange rates can cause problems for any business that trades globally. General Auto's home country is the United States.

1. (a)What is meant by a 'global business'?[2]
2. (b)Identify two factors that might influence General Auto's choice of country in which to locate the factory.[2]
3. (c)Multinational companies are not always welcome in a country because they might misuse their power. Explain how pressure groups might try and influence the behaviour of such companies.[4]
4. (d)Identify and explain three consequences for General Auto of a rise in the exchange rate of the United States dollar.[6]
5. (e)By examining the advantages and disadvantages that multinational companies create, do you think that a Government should seek to attract these companies to their country? Justify your recommendation.[6]