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1 November, 16:50

Which of the following is an example of a "greenfield" investment?

A. A Chinese oil company buys a U. S. oil company.

B. Nike contracts with a footwear company in China to make athletic shoes.

C. Toyota, a Japanese automaker, builds an assembly plant in Ohio.

D. Daimler, a German automaker, merges with Chrysler, a U. S. automaker.

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Answers (1)
  1. 1 November, 20:14
    0
    Option (C) is correct.

    Explanation:

    The greenfield investment is defined as the foreign direct investment in which a home company constructs new infrastructure or office or plant in the foreign country. These type of investments are generally for the purpose of taking control over the foreign activities. When we are comparing it with other foreign direct investments like purchasing of foreign securities or acquiring share in a foreign company in which there is no or little control over the daily business activities.

    In our case, a Japanese company setup an assembly plant in Ohio.
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Home » Business » Which of the following is an example of a "greenfield" investment? A. A Chinese oil company buys a U. S. oil company. B. Nike contracts with a footwear company in China to make athletic shoes. C.
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