Economics investment
Pertaining to Economics, investment is one of the most important factors. Investments in other words it is the capital for any kind of business operation. Economics stands on three principles such as land, labor and capital. Investments are very important to the commercial operations. All the production and manufacturing based activities requires investment. Investments are important for the service sector even. The economy of the country depends on the production and consumption of goods and services. The production of goods and services contribute to the gross domestic product of the country. Gross domestic product of a country is the value of all the goods and services produced in that country in a year. When the gross domestic product increases, it is the indication that the economy is performing well.
o the investments are highly important for the growth of an economy and the sustenance of that growth. Investments can of different types such as financial investments, real estate investments, capital goods investments, etc, but the most important among the investment is the financial investment. Here, we have described more features of economics investment.
In economics, investment the holds an important place in the production process. The financial investment is the most common form of investments. The financial investments take place in form of loans, bank accounts, insurance policies, etc.
Types of investment loans:
Leasing and hire purchase financing, etc
Term loan to medium scaled industries, small scaled industries, very small scaled industries
Working capital loan to small scaled industries and very small scaled industries
Investments are provided for activities such as-
Restaurants, eateries, and hotels
Industrial activities such as processing, manufacturing, and preservation of commodities
Computer, information technology, software development and other service oriented sectors.
health care centers, nursing home, diagnostic center, pathological and clinical labs, medical equipments, etc
Goods and passengers transportation
Development of tourism and allied activities
In classical economics, investment is capital accumulation and the increased production of capital. The economics investment is highly related to savings but they are different as the investment is the spending on a particular type of goods. According to economics, investment also refers to the non human factors of the production process. These factors are plant and machineries.
The significance of economics investment:
Investment contributes to the demand of goods and in turn increasing expenditure in the national scenario
Investment increases the capacity of production and the production base
Investments is required for improving the cost efficiency by the means of modernization of the process of production
Investment helps in the production of new improved commodities and attract new buyers
Investment such as high tech advanced machineries, automations, etc lowers the need for labor for one unit of the goods produced which increases the productivity at a lower cost but it increases unemployment
Investment integrates global standard innovations and measures of quality, which closes the gap between the developed countries and the developing countries in terms of export of quality goods in the international market