When a multinational company chooses to invest in foreign markets with wholly owned subsidiaries, these subsidiaries may be acquisitions or _______________
Operations.

Question

Quizplus · Accepted Answer

Greenfield operations refer to the establishment of a new subsidiary from scratch in a foreign market. This option provides complete control over the operations and allows the company to build the subsidiary in accordance with its own requirements and specifications. Acquisitions refer to the purchase of an existing company in the foreign market, joint ventures are partnerships with local companies, strategic alliances involve collaborative agreements, and franchising involves licensing the use of a company's products, services, or branding to a third party.

When a Multinational Company Chooses to Invest in Foreign Markets