Which of the following is a disadvantage of greenfield ventures as a mode of entry into foreign markets?
A) They have a higher potential for throwing up unpleasant surprises.
B) It is much more difficult to build an organizational culture from scratch than to change the culture of an existing unit.
C) Companies find it difficult to avoid falling into the trap of the hubris hypothesis.
D) It is slower to establish than acquisitions.
E) A firm does not have the freedom to build the kind of subsidiary that it wants.

Question

Quizplus · Accepted Answer

Greenfield ventures are slower to establish than acquisitions because they involve building new facilities from the ground up, which takes more time compared to acquiring an existing company.

Which of the Following Is a Disadvantage of Greenfield Ventures