Which of the following is true of establishing a greenfield venture in a foreign country?
A) Greenfield investments are less risky than acquiring an existing company in a foreign market.
B) A degree of uncertainty is associated with a greenfield venture because of future revenue and profit prospects.
C) Greenfield investments virtually eliminate the possibility of a more aggressive global competitor entering the market via acquisitions.
D) Greenfield investments are quick to establish.

Question

Which of the following is true of establishing a greenfield venture in a foreign country? 
A) Greenfield investments are less risky than acquiring an existing company in a foreign market.
B) A degree of uncertainty is associated with a greenfield venture because of future revenue and profit prospects.
C) Greenfield investments virtually eliminate the possibility of a more aggressive global competitor entering the market via acquisitions.
D) Greenfield investments are quick to establish.

Quizplus · Accepted Answer

Some of the disadvantages of establishing a greenfield include (1) they are slower to establish; (2) they are riskier than acquiring an existing company in a foreign market; (3) a degree of uncertainty is associated with such a venture because of future revenue and profit prospects; and (4) the possibility of being preempted by more aggressive global competitors who enter via acquisitions and build a big market presence that limits the market potential for the greenfield venture.

Which of the Following Is True of Establishing a Greenfield