GAE is a multinational company. It manufactures steel. GAE has 2400 employees and has factories in 4 countries. The business regularly introduces new technology. Holding inventory is important. GAE's directors are planning to build a new factory and want to know how legal controls over location might affect this decision. The Managing Director said, 'The new factory will create many external benefits.' Identify two ways legal controls over location might affect a business. Way 1: Way 2 : .......................................................................................................................................

Answer:

Award 1 mark per way (max 2 ).
Points might include:
- Affect where they can/cannot locate
- Affect how they produce or examples e.g. change production methods, change / restrict (raw) materials used
- Affect when / hours can operate
- Increased costs

Other appropriate responses should be credited.

Knowledge points:

Solution: