Which of the following is an example of a greenfield investment?
A)A business acquisition in Southeast Asia's former agricultural region
B)The construction of an entirely new manufacturing subsidiary overseas
C)A merger between a US and non-US company
D)The purchase of an existing business that is still in its infancy

Question

Quizplus · Accepted Answer

A greenfield investment is when a company builds an entirely new subsidiary or facility in a foreign country from the ground up. This is different from a merger or acquisition, where an existing company is bought or merged with. Option A describes an acquisition, Option C describes a merger, and Option D describes the purchase of an existing business. Therefore, Option B is the only example of a greenfield investment.

Which of the Following Is an Example of a Greenfield