Green Field Investment
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Definition of 'Green Field Investment'A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. In addition to building new facilities, most parent companies also create new long-term jobs in the foreign country by hiring new employees.This is opposite to a brown field investment. |
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Investopedia explains 'Green Field Investment'Green field investments occur when multinational corporations enter into developing countries to build new factories and/or stores.Developing countries often offer prospective companies tax-breaks, subsidies and other types of incentives to set up green field investments. Governments often see that losing corporate tax revenue is a small price to pay if jobs are created and knowledge and technology is gained to boost the country's human capital. |
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