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Green Field Investment

Categories: Investing

In politics, a grassroots movement builds from the ground up. It’s not directed by an established national organization, but starts with regular people growing the movement organically.

A green field investment has a similar vibe, though in the world of business rather than politics. In this strategy, a large company founds a subsidiary in a foreign country and grows it from scratch. It’s a more organic form of expansion, compared to, say, buying an already established firm in the country as a way to jump-start the process.

Find other enlightening terms in Shmoop Finance Genius Bar(f)