Building a subsidiary abroad from the ground up is called a(n) ________.
A) portfolio investment
B) vertical integration investment
C) acquisition
D) greenfield investment

Question

Quizplus · Accepted Answer

A greenfield investment refers to building a subsidiary abroad from the ground up, meaning that a company starts a new venture in a foreign country by constructing new facilities, hiring employees, and establishing an entirely new operation. Portfolio investment involves investing in a portfolio of stocks or bonds in a foreign company, while vertical integration investment refers to a strategy in which a company acquires other companies in the supply chain in order to control the entire process of production. Acquisition involves purchasing an existing company in a foreign country.

Building a Subsidiary Abroad from the Ground Up Is Called