Demand corresponding investment spending

The increase in the surplus (or profit) prompts the investor to expect more and more of the flow of this surplus, and the increase in surplus gives the investor greater ability to self-financing [R], whose proliferation leads to the continued development of production capacity. From this context arises the phenomenon known in the investment “accelerator principle”, which determines the relationship ... Read More »

Stock markets and the banking sector

Stock markets and the banking sector in capitalist societies are now the channels through which most investment and employment operations take place. Investment and growth The size of the total investment in any country in a given period of time is influenced by broad considerations and depends on more factors than just on the incentive for profitability (or social benefit) ... Read More »

Investment and employment

There is always a class of investors whose investments are characterized by an adventure to get rich quick. Finally, it is possible to distinguish between types of investments depending on the source of their capital. Internal investments are generated from savings originating within the country concerned. External investments arise as a result of the transfer of capital from a foreign ... Read More »

financial and banking institutions In developing countries

In developing countries to adopt the ‘standard’ of mobilizing surplus labor and investing it in building fixed capital assets. Others raise the issue of the external economics of the new project and explain the difference between this positive economic impact between investment and others. Researchers talks about the front and back linkages of each investment and its wide implications for ... Read More »

How to differentiate between types of investments

Types of investments In addition to the two main types of investment that originate from the one who owns their assets, which is referred to earlier in terms of “public investment” and “private investment” in both individual and collective terms, it is also possible to distinguish between types of investments according to a number of other characteristics. There is “automatic ... Read More »

method of settling the future revenues

The method of settling the future revenues of the new project with the current interest rate over the expected period of operation before its final depreciation (calculating the current value according to certain technical methods) is the method used to calculate the profitability of the project on the one hand and to compare the relative profitability of the projects in ... Read More »