The big advantage of establishing a(n)_______ in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.
A) franchise
B) joint venture
C) turnkey project
D) greenfield venture
E) takeover strategy

Question

Quizplus · Accepted Answer

A greenfield venture refers to establishing a new, wholly-owned subsidiary from scratch in a foreign country. This gives the firm complete control over the subsidiary's operations and allows them to build it according to their preferences and standards. In contrast, a franchise or joint venture may come with certain limitations or requirements imposed by the franchisor or joint venture partner, while a turnkey project involves the transfer of ready-made technology or expertise rather than building a subsidiary from the ground up. A takeover strategy involves acquiring an existing firm in the foreign country, which may not provide the same level of control or flexibility as a greenfield venture.

The Big Advantage of Establishing A(n)_______ in a Foreign Country