Question

true or false Greenfield development as FDI is the fastest and least expensive form of market...

true or false

Greenfield development as FDI is the fastest and least expensive form of market entry strategy.

true or false

Acquisition is a form of equity entry strategy that is commonly used by large MNCs.  

Homework Answers

Answer #1

Green field development means that an entire project is set up from scratch in the new location. This involves huge investments and therefore companies prefer brownfield investments which involve acquisition of an existing company. Therefore the given statement is false.

Equity mode has two options: wholly owned subsidiary or Joint ventures. Under wholly owned subsidiary are further two options, greenfield investments and acquisitions. Acquisitions are more popular as they give quicker market access. So the given statement is true

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