Why might a firm choose alliance as an entry vehicle and not greenfield investment?

What will be an ideal response?

Alliances are a common foreign-market entry vehicle. Often, alliances are chosen because of government
regulations. Alliances may also be used as an international-strategy vehicle due to management's lack of familiarity
with the local culture or institutions or because the complexity of operating internationally requires the firm to
focus on the activities it does best and to outsource the rest. Some combination of these three factors?regulations,
market familiarity, or operational complexity?typically explains why alliances are so often used by firms
competing internationally.
Foreign direct investment (FDI) is an international entry strategy whereby a firm makes a financial investment in a
foreign market to facilitate the startup of a new venture. FDI tends to be the most expensive international entry
tactic because it requires the greatest commitment of a firm's time and resources. FDI can be implemented in several
ways, such as through acquisitions or through a so-called greenfield alliance ?the startup of a foreign entity from
scratch. This latter form of FDI is called greenfield investment.
Alliances do not require any equity investment. Greenfield investment usually involves the greatest risk, expense,
and time; many firms pursue FDI through acquisitions or alliances.