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…
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Which of the following types of FDI includes creation of new assets and production facilities in the country?
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.
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UGC NET Commerce