Site navigation

Which of the following types of FDI includes creation of new assets and production facilities in the…

Greenfield investment is a form of Foreign Direct Investment (FDI) in which a parent company builds entirely new operational facilities, plants, and physical assets from the…

Choose your answer

Which of the following types of FDI includes creation of new assets and production facilities in the country?

Select one answer
Answer and explanation

Correct answer D

Greenfield investment is a form of Foreign Direct Investment (FDI) in which a parent company builds entirely new operational facilities, plants, and physical assets from the ground up in a host country, creating new production capacity and employment. Brownfield FDI, by contrast, involves purchasing or leasing existing facilities via cross-border mergers and acquisitions.

Practice for these exams

  • UGC NET Commerce

Related question papers

Related exam syllabi

Related questions in this topic