Sample Thesis Paper
The Greenfield investment expansion technique is the perhaps the latest development in the area of international expansion. The Greenfield investment expansion technique is one that calls for the establishment of a subsidiary in the expanding country. The subsidiary is built from the ground up and is generally designed so that is retains elements from the host country of the expanding business while customizing products and services to the demands of the region in to which the business is expanding (Epperlein 2007).
In the development stage of the Greenfield investment expansion technique, all the resources brought into use are solely from the target region and training is given to local human capital to make them aware of the business values of the host region. This technique allows the internationally investing party a considerable degree of control over the expansion in terms of the resources allocated to different development operations. However, at the same time, the process also increases risk since it is based on sole ownership and any loss incurred is transmitted directly to the expanding business. Also, the expanding business puts its investment at risk on account of the cultural differences between the host and the target countries.