What is a "Greenfield investment"?

A "Greenfield investment" refers to the process of establishing new facilities from the ground up in a foreign country, which aligns perfectly with the correct answer choice. This type of investment is characterized by the creation of new operational sites, such as factories, offices, or warehouses, as opposed to investing in or acquiring existing structures or businesses.

Greenfield investments typically allow companies to have more control over their operations, tailor facilities to their specific needs, and develop new jobs in the host country. This investment strategy is often pursued when companies aim to enter new markets with clean slate operations that reflect their branding and efficiency standards.

In contrast, other options present different investment strategies: acquiring an existing company or investing in existing assets involves taking over or utilizing what is already available, which does not align with the concept of starting anew. Forming partnerships with local businesses is a collaborative strategy that does not imply building from the ground up, but rather working alongside existing entities to enhance business operations.