BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An acquisition
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A merger
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A greenfield investment
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A multinational venture
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Detailed explanation-1: -The correct option is A Greenfield. Greenfield venture is a form of market entry strategy with the establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities from the start.
Detailed explanation-2: -greenfield investment involves the creation of a new company or establishment of facilities abroad. A greenfield investment is a form of market entry commonly used when a company wants to achieve the highest degree of control over foreign activities.
Detailed explanation-3: -The term “green-field investment” gets its name from the fact that the company-usually a multinational corporation (MNC)-is launching a venture from the ground up-plowing and prepping a green field.
Detailed explanation-4: -FDI takes on two main forms: • A greenfield investment (the establishment of a wholly. new operation in a foreign country) • Acquisition or merging with an existing firm in the. foreign country.
Detailed explanation-5: -A form of foreign direct investment where a company purchases or leases existing production facilities to launch a new production activity.