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What is the best practices in Foreign Direct Investment? From your perspective; which one is the...

What is the best practices in Foreign Direct Investment? From your perspective; which one is the most important to the developing economies? Why?

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Answer #1

The two best practices of foreign direct investment include Greenfield investment and brownfield investment.

Greenfield investment involves the the investment that is done in order to develop a business right from scratch that is purchasing of fixed material such as the land required for setting up the business and then developing it towards the end. Brownfield investment involves the investment that is done for taking over already developed business and developing from the middle. Both have advantages and disadvantages in their own perspective And however for developing economies Greenfield investment can be considered as the best mode of investment as new and new businesses can get to boom without altering the versions of old set businesses and this can improve the state of the economy all in all

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