The most important mode of entering into a foreign market via FDI in the last few years is:
A) greenfield investments.
B) brownfield investments.
C) mergers & acquisitions.
D) All modes are equally important.

Question

Quizplus · Accepted Answer

The most important mode of entering into a foreign market via FDI in the last few years is mergers & acquisitions. M&A provides companies with opportunities to expand their operations, gain access to new markets and technologies, and diversify their business portfolios. The value of global M&A deals in 2021 has already surpassed the previous year's record, indicating its significance as a mode of FDI. Greenfield investments and brownfield investments may also be important, but they involve building new facilities or acquiring existing ones, respectively, which may not always be feasible or cost-effective compared to M&A.

The Most Important Mode of Entering into a Foreign Market