When a multinational company chooses to invest in foreign markets with wholly owned subsidiaries, these subsidiaries may be acquisitions or _____ operations.

Question

Quizplus · Accepted Answer

Greenfield operations refer to a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up, as opposed to acquiring or partnering with existing local companies.

When a Multinational Company Chooses to Invest in Foreign Markets