The most risky direct investment,in which a company builds a subsidiary from scratch in a foreign company,is known as a:
A) wholly owned foreign affiliate
B) indirect investment
C) brownfield venture
D) greenfield venture
E) multidomestic venture.

Question

Quizplus · Accepted Answer

The risky direct investment, in which a company builds a subsidiary from scratch in a foreign country, is known as a greenfield venture. This type of investment carries the highest risk as it involves building a new operation in an unfamiliar territory with little or no existing infrastructure or goodwill.

The Most Risky Direct Investment,in Which a Company Builds a Subsidiary