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:

Convex Preferences

Preferences that express a consumer's desire for diversified bundles of goods over extreme bundles, depicted graphically as convex indifference curves.

Edgeworth Box

A diagram representing various distributions of resources, used to examine issues of allocation efficiency in economics.

Indifference Curves

Graphical representations showing combinations of two goods that give a consumer equal levels of satisfaction, indicating preferences.

Pareto Optimal

A condition of resource allocation in which it is impossible to make any one individual better off without making someone else worse off, signifying an efficient distribution of resources.