Greenfield Venture

1738 WordsOct 6, 20127 Pages
Unit 1 Individual Project Tiffany Nelson October 7, 2012 FIN630-1204D-02: Global Financial Management American InterContinental University International Financial Markets Introduction Not to be confused with an acquisition, a Greenfield venture is a strategy in which a parent company enters into a new market without the involvement of another business or partner. This popular strategy entails a company leasing or purchasing land, building a new facility, employing or relocating managers and employees, and then independently launching a new operation where none has existed before. Basically, the operations within a Greenfield venture are done from the ground up. As of today, many organizations…show more content…
Being accepted into France’s marketplace gives Acme right of entry to the other European Union nations. On the surface, France appears to have more of a structured trade policy, which will make France’s trade policies less prone to corruption. While some people may view being under continuous examination a bad thing, this certainly will keep France’s trading processes “honest”. According to the US Department of State (2012), a U.S. company like Acme should trade and invest with France because the U.S. is the top destination for French investment and the U.S. is the leading foreign investor in France. Economic Background and Currency Thanks to adopting Euro as their trade currency, France has managed to turn what could be risks of loss or currency risks caused by price fluctuations into foreign investment. For example, due to dollar weakness, France unfortunately lost an estimate of nine percent of their revenue growth back in 2004 but with a rising demand for French imports and the power of Euro, France weathered the storm and remains a top economy in the world (Tested by the mighty Euro, 2004). In the past, the economic outlook in France has seemed unbalanced, been questionable, and everything about their economy pointed towards a recession; fortunately for them, Euro has proven its reputation of being solid and fixed throughout the EU. As opposed to France’s currency, Mexican peso
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