Investments and Their Role in Economy

2. Labour skills
Some industries require higher skilled labour(11). Therefore, multinationals will invest in those countries with a combination of low wages, but high labour productivity and skills.
3. Transport and infrastructure
A key factor in the desirability of investment are the transport costs and levels of infrastructure. A country may have low labour costs, but if there is then high transport costs to get the goods onto the world market, this is a drawback. Countries with access to the sea are at an advantage to landlocked countries, who will have higher costs to ship goods.
4. Size of economy / potential for growth
Foreign direct investment is often targeted to selling goods directly to the country involved in attracting the investment. Therefore, the size of the population and scope for economic growth will be important for attracting investment.
Wordlist
While writing this report I found new economic terms I did not know before and their definitions. My favourite terms include account deficit and monetary policy.
In conclusion, there are many types of investments with there own general set of features, risk factors and ways in which they can be used by investors. They play, by and large, an important role in economy and can lead to higher wages and improved working conditions.
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