Economic investment refers to money one spends when purchasing new or existing assets in a company. Capital assets are the things that enhance productivity in a company through delivering goods and services. Economic investment examples include equipment, retail shops, and companies. Additionally, raw materials and human capital are also classified as economic investments. Economic investments allow a company or business to expand and increase profits. Economic investments, therefore, represent a tradeoff between the present and the future since they allow for a company or business to satisfy the consumer’s needs and expand on the services provided in the business (Tulchynska et al., 2021).
A company benefits from economic investments since it increases the assets in the company and allows them to create employment opportunities due to the increase in workload due to the company’s expansion. An increase in employment rates invests in human capital and therefore increases the financial position of people in a country as the basic needs are easily affordable even to employees. Economic investments are the tangible assets that impact production and productivity in a business (Tulchynska et al., 2021). Economic investments are a tradeoff since they allow new companies to make investments and create a base for the company to increase its productivity in the future in terms of financial investments.
Reference
Tulchynska, S., Popelo, O., Vovk, O., Dergaliuk, B., Kreidych, I., & Tkachenko, T. (2021). The resource supply of innovation and investment strategies of the microeconomic systems modernization in the conditions of digitalization. WSEAS TRANSACTIONS ON ENVIRONMENT AND DEVELOPMENT, 17, 819-828. https://doi.org/10.37394/232015.2021.17.77
