What does a Brownfield investment in Foreign Direct Investment (FDI) imply:

CA Foundation · Business Economics · PYQS · January 2026
What does a Brownfield investment in Foreign Direct Investment (FDI) imply:
(A) A. Developing entirely new infrastructure
(B) B. Utilizing existing infrastructure by means of mergers, acquisitions or leasing
(C) C. Forming partnerships with foreign companies
(D) D. Establishing a new subsidiary in another country

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Utilizing existing infrastructure by means of mergers, acquisitions or leasing

Topics: International Trade

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