Brown Field Investment


DEFINITION of 'Brown Field Investment'

When a company or government entity purchases or leases existing production facilities to launch a new production activity. This is one strategy used in foreign-direct investment.

BREAKING DOWN 'Brown Field Investment'

The alternative to this is a green field investment, where a new plant is constructed.

  1. Management Risk

    The risks associated with ineffective, destructive or underperforming ...
  2. Green Field Investment

    A form of foreign direct investment where a parent company starts ...
  3. Political Risk

    The risk that an investment's returns could suffer as a result ...
  4. Foreign Direct Investment - FDI

    Foreign Direct Investment (or FDI) is an investment made by a ...
  5. Earnings Stripping

    Earnings Stripping is a commonly-used tactic by multinationals ...
  6. Behavioral Modeling

    Using available and relevant consumer and business spending data ...
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  1. What is the difference between a green field and a brown field investment?

    Green-field and brown-field investments are two different types of foreign direct investment, or FDI. Green-field investments ... Read Full Answer >>
  2. What does it mean when advertisers say that "financing is available"? Should I trust ...

    When an advertisement says "financing", it means that the seller is going to give you a loan on an item that you purchase. ... Read Full Answer >>

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