Greenfield vs. Brownfield

Greenfield vs. Brownfield

Companies that want to expand their interests internationally generally make physical investments and purchases in another country. This is known as foreign direct investment (FDI). They purchase, lease, or otherwise acquire assets in their host country including facilities such as plants, office space, or other types of buildings. These acquisitions may come in the form of new or existing facilities. In the business world, these investments are called greenfield and brownfield investments. But what exactly are they and how do they differ?