For a startup across any industry, investment is very important to keep it running. While there are several types of investments, greenfield investment is a type of foreign direct investment aka FDI in which the parent company creates a subsidiary in a different country and builds its operations there from scratch. It handles construction of new production units, offices, and distribution hubs.
Greenfield investment involves both risks and benefits. Firstly, the companies that expand their operations in the developing countries enjoy benefits including lower corporate tax and economic benefits among others. The risks include problems related to permissions to relationship with the host country.