Brown Field Investment

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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.

INVESTOPEDIA EXPLAINS 'Brown Field Investment'

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

RELATED TERMS
  1. Green Field Investment

    A form of foreign direct investment where a parent company starts ...
  2. Management Risk

    The risks associated with ineffective, destructive or underperforming ...
  3. Foreign Direct Investment - FDI

    An investment made by a company or entity based in one country, ...
  4. Political Risk

    The risk that an investment's returns could suffer as a result ...
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    Using available and relevant consumer and business spending data ...
  6. Business Guarantee

    A credit card agreement in which any debts accrued on a corporate ...
RELATED FAQS
  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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