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masya89 [10]
1 year ago
14

rather than acquire an existing textile manufacturer in jakarta, fauxfabric inc. chose to establish new operations in indonesia.

this form of fdi is called
Business
1 answer:
Juliette [100K]1 year ago
6 0

Rather than acquire an existing textile manufacturer in jakarta, faux fabric inc. chose to establish new operations in Indonesia. this form of FDI is called a greenfield investment.

Greenfield investment is a type of foreign direct investment (FDI) where a parent company establishes a subsidiary in another country and builds the business from scratch.

Greenfield investment is a form of foreign direct investment in which a company does business in a foreign country by building new facilities from scratch. Real examples of greenfield investments are Toyota in Mexico, Hyundai in the Czech Republic and Weber in Poland.

Greenfield and brownfield investments are two types of foreign direct investment. Greenfield investments allow companies to build their own new facilities from the ground up. A brownfield investment occurs when a company purchases or leases an existing facility.

Learn more about Greenfield investment brainly.com/question/8948781

#SPJ4

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Cheers.

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