A company wants to build a new factory from scratch overseas. This is an example of:
A) franchising.
B) greenfield venture.
C) joint venture.
D) exporting.
E) licensing.

Question

Quizplus · Accepted Answer

Building a new factory from scratch overseas is an example of a greenfield venture, which refers to a company starting a new business from the ground up in a foreign location. Franchising involves granting others the right to use one's business model and brand name, joint venture refers to a partnership between two or more companies to operate in a foreign market, exporting involves sending goods or services from one country to another, and licensing involves granting the rights to use one's intellectual property to another party.

A Company Wants to Build a New Factory from Scratch