Which of the Following Is an Example of a "Greenfield

question 47

Multiple Choice

Which of the following is an example of a "greenfield" investment?

• A) Nike contracts with a footwear company in China to make athletic shoes.
• B) A Chinese oil company buys a U.S. oil company.
• C) Toyota, a Japanese automaker, builds an assembly plant in Ohio.
• D) Daimler, a German automaker, merges with Chrysler, a U.S. automaker.

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Product Development

The creation of new products or the improvement of existing ones, involving idea generation, design, testing, and commercialization processes.

Market Penetration

An indicator of the total sales or use of a product or service relative to the maximum potential market for that product or service.

Market Development

Strategies or activities aimed at finding new markets or expanding existing ones for a product or service.