1. Why did General Motors (GM) leave South Africa ten years ago? What were the dilemma facing foreign firms at that time?
Ten years ago, the racial discrimination was on peak in South Africa. General Motors did not want to be affected by the racial discrimination going on in that country. There was a risk to the financial position of the company if it continued to stay in South Africa. Moreover the other leading company in South Africa also started taking necessary steps to stay away from the risky environment of South Africa. GM, being a large company helped in giving a large number of employments to the people of south Africa. The decision of GM was very strict because the company did not want to risk its global stability just because of a single region.