List - I List - II A. Greenfield Investment I. Direct Investment overseas aimed to sell the output of a firm's domestic production process B. Foreign Portfolio Investment II. Overseas investment to acquire existing facilities C. Forward Vertical FDI III. Overseas investment to create new facilities from the ground up D. Brownfield Investment IV. Investment in foreign financial instruments such as foreign stock, government bonds etc.
Foreign Investment Types Matching Solution
This solution explains the matching between different types of foreign investment (List - I) and their definitions (List - II).
Matching Concepts: List I with List II
| List - I Term | List - II Definition | Correct Match |
| A. Greenfield Investment | III. Overseas investment to create new facilities from the ground up | A - III |
| B. Foreign Portfolio Investment | IV. Investment in foreign financial instruments such as foreign stock, government bonds etc. | B - IV |
| C. Forward Vertical FDI | I. Direct Investment overseas aimed to sell the output of a firm's domestic production process | C - I |
| D. Brownfield Investment | II. Overseas investment to acquire existing facilities | D - II |
Explanation of Matches
A. Greenfield Investment (A-III): This involves starting a new operation from scratch in a foreign country, building entirely new facilities.
B. Foreign Portfolio Investment (B-IV): This is an investment in foreign financial assets, like stocks and bonds, without the intent to control the company.
C. Forward Vertical FDI (C-I): Investing in foreign operations primarily to sell the goods or services produced by the home country's operations. Definition I describes this outward focus on sales channels.
D. Brownfield Investment (D-II): This type of investment involves acquiring or leasing existing facilities or companies in a foreign country.
The correct combination derived from these matches is A-III, B-IV, C-I, D-II.
Important Questions from Business Environment and International Business
G20 Summit (2023) Proposed which Economic corridor including shipping and rail lines?
- According to eclectic theory of foreign direct investment, foreign direct investment will occur under which of the following conditions when they are to be uniquely combined?
A. Ownership
B. Location
C. Market power
D. Internationalization
E. Vertical integration
Choose the most appropriate answer from the options given below : Which statement best captures the difference between FDI and FPI ?
- A possible cost of FDI to the host country is:
- A statistical statement in International business that shows at a point the value of financial assets of residents of an economy that are claims on non-residents or are gold bullion held as reserve assets and the liabilities of residents of an economy to non-residents is known as
