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Business Studies IGCSEPDF 202
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3. GAE isa 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.’
(a) Define ‘external benefits’.
(b) Identify two ways legal controls over location might affect a business.
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