A greenfield venture is when a company builds a subsidiary from scratch in a foreign country instead of acquiring an established

Question

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A greenfield venture is when a company builds a subsidiary from scratch in a foreign country instead of acquiring an established

firm. If successful, this can be more profitable because the profits do not have to be shared with a partner or another firm. It also...a. trades control for greater returnsb. is the riskiest type of direct investmentc. is the lowest risk form of international business

Business

1 answer:

xeze [42] · Answer 1 · 2022-06-22T01:21:23+03:00

Answer:

Trade control for greater returns

Explanation:

Considering the way of founding a Greeenfield venture , it has the benefit of being more profitable as it does not have to share its profit with ant other party.

Another benefit that worth mentioning is trade control for greater returns. It maintains a high level of control over manufacturing procedures ,business operations branding and staffing towards profit maximization.

However ,just like in sole proprietorship, the risk involved can be very high.