Low GPA/Better School v High GPA/Lesser School

Hey guys, could use some help.

Currently go to a LARGE public university in the southeast. It's one of the best public schools out there, but admittedly it's not a top target school or anything.

I've completed 4 semesters (currently taking a semester off to figure out some stuff) and my GPA is horrible, about a 2.45. I've had some family troubles which are to blame and I was working a lot, but I'll admit that a large part of it was me not caring enough (don't know what changed from high school to college, I was waitlisted at a couple Ivy league schools back in high school, but oh well that's not important).

In this past summer I've had a lot of time to think and reevaluate and I'm strongly considering transferring to a much smaller and newer public state university about 20 minutes from my home.

Some advantages of this are that I get a fresh start with my GPA, will be closer to family (which is big for me) and probably overall happier, and I'll actually be back in a business major (at current school my GPA is too low for business school, sadly enough)...Disadvantages are of course that I'll be at a much smaller and lesser known school and I'll have a much smaller alumni base...employers/grad schools may also attribute my better grades starting post-transferring to being at a smaller school (may be perceived as easier).

One other thing in my favor is that I have two summers left before graduation, so I have two internships left (have only done a very small one up til now at an insurance firm in some general finance/business capacities).

So, which scenario plays out better for me in future employment and grad school?...I'd actually mainly be looking at schools in Europe, either back in my home country of Switzerland (IMD, St. Gallen) or a couple others throughout Europe, and then some in the US.

Thanks in advance.