Match List - I with List - II. A. Greenfield Investment I. Direct Investment overseas aimed to sell the…
In international investment classification: (A) Greenfield Investment is an overseas FDI that builds brand-new operational facilities from the ground up (III); (B) Foreign…
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Match List - I with List - II.
| A. Greenfield Investment | I. Direct Investment overseas aimed to sell the output of a firm's domestic production process |
| B. Foreign Portfolio Investment | II. Overseas investment to acquire existing facilities |
| C. Forward Vertical FDI | III. Overseas investment to create new facilities from the ground up |
| D. Brownfield Investment | IV. Investment in foreign financial instruments such as foreign stock, government bonds etc. |
Answer and explanation
Correct answer D
In international investment classification: (A) Greenfield Investment is an overseas FDI that builds brand-new operational facilities from the ground up (III); (B) Foreign Portfolio Investment (FPI) is passive investment in foreign financial instruments such as stocks and bonds (IV); (C) Forward Vertical FDI is direct investment overseas aimed at distributing or selling the output of a firm's domestic production (I); and (D) Brownfield Investment is cross-border investment via acquiring or leasing existing foreign facilities (II) (A-III, B-IV, C-I, D-II).
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UGC NET Commerce