green field and brown field investment
Green field and Brown field investment
Today We are learn about two types of investment which are extensively used in business news topics (Green Field Investment and Brown Field investment) .This type of investment terminology extensively used in international market and also in FDI (Foreign Direct investment ) discussions . To engulf this topic firstly you should need know briefly about FDI , from its gesture we estimated it is the investment of the foreign investors in our country . But major benefits for this type of investment are insensitive on various types of tax and get subsidies rates on various purchasing in local market for set up manufacturing units. From this we start learn about Green field investment and brown field investment.
GREEN FIELD INVESTMENT: In this type of investment parent company build or set up plant or manufacturing units or all other things in foreign countries . It is the foreign Direct investment . This type of investment majorly prove to be win-win condition for both sides. Because new projects in foreign countries helps to generate both formal and non-formal employment and helps to generate revenue for government. On other side it helps to company expand their business and help to expand there portfolios of business. This investments are FDI So local government gives land on subsidies rate or also offers subsidies tax rate. So that company easily flourished its business.
BROWN FIELD INVESTMENT: It is also a Foreign direct investment. But there is little bit difference in brown field investment. In this type of investment parent company can buy or leases the existing production facilities to launch a new production activities . In simple words , In brown field investment it can purchase the ready made production facilities so that they have no need to manufacturing the new plant or unit.
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