Typically, Licensing is considered to be a greater foreign investment than a Greenfield investment.

Question

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Greenfield investment refers to establishing a new operation in a foreign country, while licensing is a type of international business arrangement where a firm allows another company in a foreign market to use its proprietary intellectual property. Greenfield investments involve higher levels of financial commitments, risks, and control compared to licensing, which typically involves lower levels of investment and risks. Therefore, a Greenfield investment is generally considered to be a greater foreign investment than licensing.

Typically, Licensing Is Considered to Be a Greater Foreign Investment