A greenfield investment:
A)is a form of FDI that involves the establishment of a new operation in a foreign country.
B)involves a 7 percent stock in an acquired foreign business entity.
C)involves a merger with a foreign business.
D)occurs when a firm acquires another company in a foreign country.

Question

Quizplus · Accepted Answer

A greenfield investment refers to the establishment of a new operation in a foreign country, typically involving building a new factory, office, or other facilities from scratch. It is a type of foreign direct investment (FDI) that does not involve the acquisition or merger with an existing company in the foreign country.

A Greenfield Investment