investment
(noun)
The expenditure of capital in expectation of deriving income or profit from its use.
Examples of investment in the following topics:
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Industrialized Countries
- HDI considers these factors, but also accounts for how income is invested in healthcare, education, and other infrastructure.
- Human Development Index (HDI) is a measure of how much of a nation's wealth is invested into local services such as education and infrastructure.
- Countries with low HDI tend to be caught in a national cycle of poverty -- they have little wealth to invest, but the lack of investment perpetuates their poverty.
- Because nations have varying levels of wealth, income, and investment in infrastructure, individual populations experience inequality.
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Thinking Globally
- Consider China's current investments in Africa, which many observers have characterized as neocolonial.
- Chinese companies have invested in Africa, building infrastructure, hiring workers, and obtaining rights to extract oil and minerals.
- On the one hand, these investments could be considered free market trade: after all, China has paid for labor and mining rights.
- On the other hand, these investments can be seen as a relationship of domination.
- In that sense, African countries are dependent on outside investment.
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Property
- An example of private property stimulating economic growth is when a homeowner makes home improvements to increase the value of their home, when in a similar situation a tenant in a government-owned building would not invest money in home improvements.
- An example of private property stimulating economic growth is when a homeowner makes home improvements to increase the value of their home, when in a similar situation a tenant in a government owned building would not invest money in home improvements.
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Industrial Work
- Building new industrial machines required enormous investments.
- To be able to afford these investments, production had to take place on a larger scale.
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Wealth
- One way that many wealthy individuals increase their wealth is by investing in the stock market.
- To invest, individuals need to have sufficient assets to buy stock shares.
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Income
- Salary alone only measures the income from a person's occupation, while total personal income accounts for investments, inheritance, real estate gains, and other sources of wealth.
- Personal income is an individual's total earnings from wages, investment interest, and other sources.
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Urban Gentrification
- When the number of urban pioneers reaches such a critical mass, it attracts business investment and new amenities such as bars, restaurants, and art galleries.
- Renewed business attracts more investment capital and new residents, increasing local property values.
- It may be the result of fluctuating relationships between capital investments and the production of urban space.
- During the two decades following World War II, low rents in the city's periphery encouraged suburban development; as capital investment moved to suburbs, inner-city property values fell.
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Poverty
- Human Development Index (HDI) is a measure of how much of a nation's wealth is invested into local services such as education and infrastructure.
- Countries with low HDI tend to be caught in a national cycle of poverty -- they have little wealth to invest, but the lack of investment perpetuates their poverty.
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Disinvestment and Deindustrialization
- American companies are still involved in the financial aspects of the company; the company remains an American property or American financiers invest through foreign direct investment in companies based abroad.
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Colonialism and Neocolonialism
- The United States is an example of a core country, with immense capital and relatively high wage labor; Mexico is a semiperipheral country, where the economy has grown rapidly and there is significant technology manufacturing, but where most capital still comes from foreign nations; Liberia is an example of a peripheral country, where virtually all investment is foreign and many wage laborers earn less than $1/day.
- The search for raw materials and new investment opportunities is the result of inter-capitalist rivalry for capital accumulation.