Phantom FDI is a term used to describe foreign direct investment that does not represent real economic activity in the host economy. It typically involves multinational corporations routing funds through special purpose entities (SPEs) or "empty corporate shells" in low-tax jurisdictions or investment hubs primarily for tax optimization or regulatory arbitrage purposes. Such investments artificially inflate FDI figures but contribute little to the real economy in terms of jobs, capital formation, or productivity. - Option A describes greenfield investment, which is real FDI. - Option B describes investments by high-net-worth individuals, which could be real or phantom depending on the structure. - Option C accurately describes the nature of phantom FDI using corporate shells.