Contrast greenfield investment versus foreign direct investment.

Question

Question

Answer 1

Answer #1

FDI is such an investment which is made by an individual or an organisation into businesses that are located in a different country or we can say that FDI is when an organisation or an individual owns a participation in the shares of a minimum of 10 percent of a foreign company.
No subsidiary company is formed

Greenfield investment :

Its a type of FDI in which a parent company creates a subsidiary in a different country, building its operation from its base.
Subsidiary company is formed
Tax breaks, financial incentives

Answer 2

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