Consider the following investments in an economy by a foreign company : 1. Purchase of the ownership of a transport company 2. Setting up a new company to produce transport equipment 3. Acquisition of a Public Sector Unit 4. Building a storage facility to expand the production capacity Which of the above are examples of brownfield investments?
1 and 3 only
Brownfield investment refers to foreign investment made by acquiring, taking over, or merging with an already existing company or asset, as opposed to Greenfield investment, which involves setting up entirely new facilities.
Item 1, purchase of the ownership of an existing transport company, is a Brownfield investment since it involves acquiring an already-operating entity.
Item 2, setting up a new company to produce transport equipment, is a Greenfield investment as it creates a new production facility from scratch.
Item 3, acquisition of a Public Sector Unit, is a Brownfield investment since it involves taking over an existing enterprise.
Item 4, building a storage facility to expand production capacity, involves creating new capacity and is therefore a Greenfield investment, not Brownfield.
Hence, the answer is that items 1 and 3 are examples of brownfield investments.
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