A form of foreign direct investment where a parent company builds its operations in a foreign country from the ground up is called ________________.
A) A red field investment
B) A greenfield investment
C) Merger
D) Acquisition

Question

Quizplus · Accepted Answer

Greenfield investment is a strategy where a company builds its operations in a foreign country from scratch, including factories, offices, and other facilities. This approach is different from mergers and acquisitions because the company has no existing operations in the foreign country. A red field investment is not a recognized term in finance.

A Form of Foreign Direct Investment Where a Parent Company