Question

bmw is increasing production capacity in its u.s. operations in order to be able to respond to growing demand for its brand. which best describes bmw’s u.s. operations?

Answer 1

By increasing production capacity in the U.S., BMW is engaging in d. Greenfield investment.

Greenfield investment:

• Falls under Foreign Direct Investments
• Involves building more plants and facilities in a country to produce more

BMW is increasing its production capacity in the U.S. which means that it is engaging in greenfield investments because it is trying to produce more in the United States.

In conclusion, BMW is engaged in greenfield investment.

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Options for this question include:

a. acquisition

b. joint venture

 

c. licensing agreement

d. Greenfield investment