Asked by Mariah Trevino on Jul 12, 2024
Verified
Dienne Automobiles has chosen to enter the foreign market by creating a wholly owned subsidiary. This subsidiary is developed through a greenfield venture. Which of the following internationalization entry tactics is being used by Dienne Automobiles in this scenario?
A) The entry tactic of ally
B) The entry tactic of buy
C) The entry tactic of make
D) The entry tactic of donate
Greenfield Venture
Refers to a type of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Wholly Owned Subsidiary
A company whose entirety of shares is held by another corporation, the parent company, thus giving the parent complete control.
- Highlight the variances among "make," "buy," "ally," and other international market entry tactics.
Verified Answer
GK
Grace KazakJul 18, 2024
Final Answer :
C
Explanation :
The entry tactic of "make" is being used by Dienne Automobiles, as they are entering the foreign market by creating a new operation from the ground up (a greenfield venture), rather than through partnerships, acquisitions, or donations.
Learning Objectives
- Highlight the variances among "make," "buy," "ally," and other international market entry tactics.
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