In an international business where transferring products,competencies,skills,and know-how from the established operations of the firm to the new subsidiary are principal ways of creating value,a(n)_____ is a better choice since it is much easier to build an organization culture and operating routines from scratch than it is to change the same of an existing unit.
A)joint venture
B)greenfield venture
C)merger
D)acquisition

Question

Quizplus · Accepted Answer

It is much easier to build an organization culture from scratch than it is to change the culture of an acquired unit.Similarly,it is much easier to establish a set of operating routines in a new subsidiary than it is to convert the operating routines of an acquired unit.This is a very important advantage for many international businesses,where transferring products,competencies,skills,and know-how from the established operations of the firm to the new subsidiary are principal ways of creating value.

In an International Business Where Transferring Products,competencies,skills,and Know-How from the Established