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In Deciding How to Make a Foreign Direct Investment in a Particular

Question 10

Multiple Choice

In deciding how to make a foreign direct investment in a particular country, which of the following should a company do?


A) Make a greenfield investment if there is excess productive capacity in the industry.
B) Make an acquisition if the window of opportunity is short and it is important to become a "player" in the country quickly.
C) Make a greenfield investment if existing companies have due diligence problems that would transfer to new owners.
D) Only statements b and c are correct.
E) Only statements a and b are correct.

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