Which of the following is an example of a greenfield investment?
A) an agricultural business acquisition in South-east Asia's former agricultural region
B) the construction of an entirely new steel manufacturing subsidiary overseas
C) a merger between a U.S. and 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 refers to the establishment of a new business, usually through building new facilities or expanding existing ones. Option B, the construction of an entirely new steel manufacturing subsidiary overseas, fits this definition. The other options involve either acquisition or merger with an existing business, which is not a greenfield investment.

Which of the Following Is an Example of a Greenfield