A greenfield venture in a foreign market is one in which:

• A. A company forms a joint venture with a local partner in the foreign country.
• B. A company acquires an existing firm in the foreign country.
• C. A company builds a new facility from the ground up in the foreign country.
• D. A company exports goods to the foreign country without any direct investment.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the term 'greenfield venture' in the context of international business and microeconomics. It refers to a mode of foreign direct investment where a company starts a new operation from scratch in a foreign country.
2. Step 2: Compare the options given: forming a joint venture, acquiring an existing firm, building a new facility, and exporting goods without investment.
3. Step 3: Recognize that forming a joint venture involves partnering with a local firm, which is different from starting a new operation independently.
4. Step 4: Understand that acquiring an existing firm means buying an already established business, which is not the same as building from the ground up.
5. Step 5: Identify that exporting goods without direct investment does not involve establishing a physical presence in the foreign country, so it is not a greenfield venture.