A greenfield venture in a foreign market is one
A) where the company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the market from the ground up.
B) where foreign facilities and marketing strategies are shared with local businesses.
C) where the company learns through training by the foreign entity on how to compete.
D) that supports exports into a foreign market by marketing indirectly thru local rivals.
E) that offers lower risk and a faster path to financial returns.

Question

Quizplus · Accepted Answer

A greenfield venture in a foreign market is when a company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the market from the ground up. This involves building new facilities, establishing supply chain networks, hiring local employees, and creating marketing strategies tailored to the local market. It is a high-risk, high-reward approach that offers the company complete control and allows for customization to fit the specific needs of the foreign market.

A Greenfield Venture in a Foreign Market Is One