The main advantage of establishing a greenfield venture in a foreign country is that it:
A) gives the firm a much greater ability to build the kind of subsidiary it wants.
B) uses the resources and expertise of the local workforce.
C) allows economies of scale.
D) builds on competitive strengths.

Question

Quizplus · Accepted Answer

The main advantage of establishing a greenfield venture in a foreign country is that it allows a firm to start from scratch, giving it the freedom to design and build the subsidiary exactly as it wants, without the constraints of pre-existing structures or practices. This enables the firm to implement its own technology, culture, and processes right from the beginning.

The Main Advantage of Establishing a Greenfield Venture in a Foreign