Consider the following two cases.In the first,a U.S.firm purchases 18% of a foreign firm.In the second,a U.S.firm builds a new production facility in a foreign country.Both are ________,with the first referred to as ________ and the second as ________.

Question

Quizplus · Accepted Answer

Both cases involve foreign direct investment (FDI) outflows from the U.S. firm. In the first case, the investment is in the form of a minority stake in an existing foreign firm (greenfield investment). In the second case, the investment is in the form of a new production facility (brownfield investment).

Consider the Following Two Cases