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Scenario: Global Manufacturing, Inc. (GMI)

Question 74

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


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

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