dixin的。。 - investment.

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Briefly explain how each of the following would affect investment: Consumer Demand If consumer demand increases, businesses will increase investments to increase its size of production in order to meet consumers’ needs. Phase of the Economy Business investments and activities increase during peak and recovery periods and decrease during trough and recession periods. Government Policy If government’s policies favor businesses, such as tax cut or access to more resources, it is more likely for businesses to increase their investments. Uncertainty If the uncertainty about operation or market is great, businesses will not invest a lot. Price Controls If price is set that the business is unable to cover their production costs, they will not increase
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Unformatted text preview: investment. Also, price controls means there’s government interference. Labour unrest Labour unrest leads to decrease for business investments. Businesses have to first control their workers for production. Foreign Competition Foreign competition reduces businesses’ investments. Imports from other countries will compete for target market with local businesses. Production costs High production costs will not lead businesses to invest more money, since they have to be able to cover greater amount of expenses. Taxes High tax rate reduces business investments. Tax cut leads to greater investments. Interest rates Interest rate low results businesses to borrow more money which leads to increase in investments....
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This note was uploaded on 01/11/2012 for the course ECONOMICS 1010 taught by Professor Aandan during the Spring '10 term at York University.

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dixin的。。 - investment.

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