Which of the following is an example of a "greenfield" investment?
A) Nike contracts with a footwear company in China to make athletic shoes.
B) A Chinese oil company buys a U.S. oil company.
C) Toyota, a Japanese automaker, builds an assembly plant in Ohio.
D) Daimler, a German automaker, merges with Chrysler, a U.S. automaker.

Question

Quizplus · Accepted Answer

A greenfield investment refers to building new facilities, factories or plants from scratch in a new market. Building a new assembly plant in Ohio by Toyota is an example of a greenfield investment. Option A refers to outsourcing to a local manufacturer, Option B is an example of a cross-border merger and Option D is an example of a horizontal integration.

Which of the Following Is an Example of a "Greenfield