Scenario: Global Manufacturing Inc. (GMI)

Scenario: Global Manufacturing Inc. (GMI)
Global Manufacturing Inc., a fast-growing U.S. company, plans for a production system in which two components of its product will be manufactured in locations where the cost of production is lowest. The components will then be taken to maquiladoras for final assembly. GMI plans to purchase an existing company in Brazil to produce component A and build a subsidiary in Thailand to produce component B.
-GMI's subsidiary for component B in Thailand is best described as a(n) ________.

A) greenfield investment
B) portfolio investment
C) acquisition
D) merger

Correct Answer:

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