An advantage of establishing a greenfield venture in a foreign country

QUESTION

An advantage of establishing a greenfield venture in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants

Indicate whether the statement is true or false.

ANSWER

TRUE
The big advantage of establishing a greenfield venture in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. It is much easier to build an organization culture from scratch than it is to change the culture of an acquired unit.