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.

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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 >>
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    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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