商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 11 Investment Demand.pptVIP

Unit Eleven Introduction It is very important that various factors, such as current demand for the product, pressure on the plant capacity, future expectations, technological progress, profit position, the rate of interest should be taken into account when businessmen invest. Text 1 What factors will determine the level of investment spending in our hypothetical economy? 2 Now the determinants of investment demand are , if anything ,even more complicated than those that influence consumer demand .Indeed, while economists often stress the relative depend ability of consumer spending at a given level of national income they usually point out the great variability of business investment spending. For this reason, changes in investment spending are of ten seen to be pivotal in causing upswings or downswings in a modern economy. present position. Are sales good? Is demand for your product high? Is the extra machinery needed to produce more output? But it also requires an assessment of the future. Are sales likely to expand or contract over the life of the new machinery? Demand may be buoyant today, but does the future look bright or gloomy? In other words, the first thing one would have to do would be to formulate some general opinion about the future market for one’s particular product. Business expectations are a crucial factor influencing investment spending. Text the introduction and absorption of innovational advances to be the mainspring of the major fluctuations of a modern economy. The judgment on whether investment in a new line of business or new productive process will work is not a mechanical one: it involves considerable uncertainty and, indeed, Schumpeter felt that those who took the lead in innovations had to have certain special qualities of character and leadership ability. 7 Further it explains the decline of unemployment and rise of wages, the r