Question

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

Accepted Answer

Greenfield investment refers to a form of foreign direct investment where a parent company creates a new venture in a foreign country by constructing new operational facilities from the ground up. This includes building new factories, offices, and other physical assets in the host country, thus creating new production capacities and jobs.

Quiz 2: Business, Culture, and Investment

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