2 .2.2.

 Brownfield investments
This type of investment refers to the merger or acquisition process with a foreign investor with
local businesses. Unlike greenfield investments, brownfield investments involve buying or
investing in existing businesses. The investor buys already existing plants, buildings,
warehouses, companies with the aim of starting new or expanding current business activities. In
transition countries, this is a more common form of investment than greenfield investment. The
reason for such a situation lies in the fact that in such countries there are many unused capacities
and large companies left over from the socialist period.

Benefits of brownfield investments:

 Lower business risk ,
 Possibility of risk diversification ,
 The existence of infra tours ,
 Possible to achieve long-term goals in the short term .

Disadvantages of brownfield investments:

 The problem related to the security of the country ,

 The eventual dismissal of employees or reduction of the business activities of
the merged or purchased company ,
 There is no increase in the production capacity of the host country .