What is Greenfield investment?
A. A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities.
B. A form of foreign direct investment where a company purchases or leases existing production facilities to launch a new production activity.
C. Investment by non resident Indians.
D. Investment in shares and debts.
Answer:A
What is Greenfield investment?
A. A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities. B. A form of foreign direct investment where a company purchases or leases existing production facilities to launch a new production activity. C. Investment by non resident Indians. D. Investment in shares and debts.
Explanation: A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities is called Greenfield Investment. A form of foreign direct investment where a company purchases or leases an existing production facility to launch a new production activity is called Brownfield Investment.