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(Greenfields (When its appropriate (Rich local knowledge and experience),…
Greenfields
Disadvantages
Costly and complex
No negative previous history
Slower start up
Avoids problems of integration
New workforce
Full control
High risk and investment commitment
Advantages
When its appropriate
Rich local knowledge and experience
M&A
increase in plant capacity
Larger market share
Control over foreign technology
Disadvantages
Rapid expansion
Can be costly
Advantages
Cultural and managerial differences