The clear advantage of a brown-field investment strategy is that the building is already constructed. The costs of starting up may be greatly reduced. The time devoted to construction can be avoided as well.
If the existing national or municipal government requires licenses or approvals, the brown-field facility may already be "up to code." In cases where the facility previously supported a similar production process, brown-field investments can be a real coup for the right company.
Brown-field investments run the risk of leading to buyer's remorse. It is rare that a company looking to engage in FDI finds a facility with the type of capital equipment and technology to suit its purposes completely. If the property is leased, there may be limitations on what kinds of improvements can be made.
Read more: What is the difference between a green field and a brown field investment? | Investopedia http://www.investopedia.com/ask/answers/043015/what-difference-between-green-field-and-brown-field-investment.asp#ixzz4KIvu1e4l
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