A greenfield investment is ________.
A) an investment in Southeast Asia's former agricultural region
B) the building of a subsidiary abroad from the ground up
C) an investment in the United States by a non-U.S. company
D) the purchase of an existing business that is still in its infancy

Question

Quizplus · Accepted Answer

A greenfield investment is the building of a subsidiary abroad from the ground up, rather than acquiring an existing company or investing in a joint venture. Therefore, option B is the correct choice. Option A refers to a specific location, whereas option C describes a broad category of foreign investment. Option D describes an acquisition of an existing business, which is not considered a greenfield investment.

A Greenfield Investment Is ________