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Rather than acquire an existing machine parts manufacturer in Mexico, Robertson Corp., based in Ohio, chose to establish new operations in a northern Mexico city. This form of FDI is called

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The form of Foreign direct investment used to acquire the existing machine parts manufacturer in Mexico, Robertson Corp based in Ohio is called a greenfield investment.

What is a greenfield investment?

A greenfield investment refers to a foreign portfolio investment whereby a company buys the stocks or bonds of an existing company.

In conclusion, the acquisition of Robertson Corp in other to establish new operations in a northern Mexico is called a greenfield investment.

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