商务英语综合教程（下册）Unit_11_Investment_Demand教材教学课件.ppt

Unit Eleven ;Introduction; 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. ; 3 To appreciate the problem, put yourself in the place of a businessman and ask what factors are likely to influence you in a decision to expand the size of your factory, to add new machines, equipment and so on. There are a host of obvious factors that you would have to take into account at the outset. Basically, you would be trying to judge the future profitability of the investment . This would involve an assessment of your ; 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. ; 4 But it is not just the state of the market that one has to estimate. As a businessman, you would also have to investigate whether there are new productive methods and processes available to you that will make the investment profitable in terms of reducing costs of production or producing an improved product. The kinds of plant, tools, and machinery w