Question

Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researching this project has delivered a negative report. The main concern of the committee is probably: a. loss of intellectual property due to Russian piracy. b. Russia's recent actions to gain state control of private firms' assets. c. the fluctuation in the value of the ruble. d. the numerous and conflicting legal authorities in Russia

Answer 1

Answer: Option (B)

Step-by-step explanation:

Under this , the committee's main concerns is that Russia's recent activity is referring to the fact that they are trying to gain state control of the privately owned firms. Since the investment is done using a greenfield venture and under this there is an establishment of a new subsidiary in the foreign country thereby constructing it from the ground or from the start. Therefore, the U.S. firm is concerned about the Russian authority talking control.