Question

Imagine that before black diamond initiated its greenfield venture in zhouhai, china, peter and wim asked for your advice. what would you have told them about greenfield ventures? check all that apply.

Answer 1

If your choices are the following:
a. The plant in Zhouhai has the potential to be highly profitable.

b. More than any other direct investment strategy, a greenfield venture gives a company complete control over the operation.

c. Because BD makes mountaineering equipment that users depends on for their lives, the risks of a greenfield venture are offset by the advantages.

d. To make greater profits, though at greater risk, BD could manufacture equipment domestically and export it to Asia.

The answers are B and C.

Answer 2

A green field investment or venture is a foreign direct investment known as FDI. If a company decides to go the FDI route, they are building their operations within a foreign country from start to finish. They will often build many distribution warehouses, offices and living areas for their workers that go to the foreign country to work or those within the foreign country working for the parent company.