Which of the Following Is a Disadvantage of Greenfield Ventures

question 105

Multiple Choice

Which of the following is a disadvantage of greenfield ventures as a mode of entering foreign markets?

• A) Greenfield ventures 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 the hubris hypothesis of acquisitions.
• D) There is a possibility of being preempted by aggressive global competitors who enter via acquisitions.
• E) A firm does not have the freedom to build the kind of subsidiary that it wants.

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Definitions:

Government Control

The involvement and regulation by governmental bodies in certain areas of the economy or specific industries to enforce policies and laws.

Consumer Surplus

The disparity between the total payment consumers are willing and have the ability to make for a good or service, and the payment they indeed make.

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.

Surplus II

An excess of production or supply over demand, leading to potential wastage or decrease in prices.