2 .2.1.

 Greenfield investments
This type of investment involves investing in new projects, setting up new customers, branches
or some intangible forms of capital. The investment starts from a green field, ie from empty land,
hence the name of such investments. The parent company has absolute control over such
investments and has the technical know-how on which to establish the business. This type of
investment is a privilege of large multinational companies and is an alternative to other types of
investments such as acquisition, license purchase, partnership association, etc.

Benefits of greenfield investments:

 Development of the host country ,
 Knowledge transfer and technology ,
 The presence of foreign capital in the host country leads to an increase in the value
of capital ,
 The opening of new working places ,
 Reducing import dependency ,
 Balancing the country's balance of payments , ..

Disadvantages of greenfield investments:

 When it comes to increasing the purchasing power of the

population can come to greater demand for goods from imports ,
 Outflow drain - go local highly qualified work force in the company of a
foreign owner for better conditions at work and higher wages,
 Greenfield investments in basis often based St. drawbar operation on the exploitation of
local natural resources that are not renewable ,
 Environmental pollution ,
 Ev entualne changes in height and waist tours domestic price .