Tuesday, February 22, 2011

the factor of investment

now,economics lesson about the factor of investment  :

a. The predicted profit rate will be obtained .
Forecast profits from investments will be made will affect investment. Usually a company or entrepreneur will choose the sector that has good prospects in other words profit forecast is quite high. This caused the need of capital required to invest a lot of capital so that if profits are forecast to slightly greater then the capital would be difficult to return. 


b. Interest rates .

interest rates also affect investment. Interest rates determine what type of investment provide benefits to the entrepreneurs. employers will only invest only if the return on capital from the investment is made, the presentation gains to be obtained prior to deducting the interest rate to be paid is greater than the interest rate itself. 

c. Estimated economic circumstances.

Estimated economic situation is, when economic conditions indicate better conditions, investors would want to invest their capital. 

d. technological developments.

advancing developments in technology, production tools and more behind the investment banking needs to be multiplied in the wake need an entirely new factory for the new technology 

e. The predicted profit rate will be obtained.

 Forecast profits from investments will be made will affect investment . Usually a company or entrepreneur will choose the sector that has good prospects in other words profit forecast is quite high. It is caused invest need a lot of capital so that if profits are forecast to be less,the capital would be difficult to return. 

f. national income .

national income which  high is an indication that the income level is too high. high incomes tend to consume more goods and services and result in higher demand for goods and services so that the company's profits also increased, because profit   increases, the company can invest more.

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