The development of a modern economy would not have been possible without the two main levers of economic management - stable lending and long-term investments. The latter have a huge impact on the development of certain sectors of the economic economy of any country, therefore, for a better understanding of the mechanism of their functioning, investments and their main types should be carefully studied. Indeed, in addition to additional financial injections into the development of existing industries, they can give an impetus to the emergence of completely new directions in scientific and technical activity.
So, gross investments represent the entire amount of capital costs, which includes not only depreciation, but also additional investments in production, which appear at the expense of profit. In addition, there are also net investments that do not take into account depreciation charges. Everyone knows that investors, before investing in a specific industry, are preliminary studying the economic situation, weighing all the advantages, and also taking into account possible risks. Thus, the preliminary gross and net investments are carefully calculated and studied by professional investors, as a result of which they can predict their investment income. The whole process of such a study translates into a report on which it can be concluded about the level of the investment climate in the country. It can be either positive, which indicates a successful level of development of the state, or negative if the country has an unstable economic or political situation. In the latter case, the investor refuses to finance a project.
In addition, it should also be noted that gross investment is a long-term investment in the economy of an enterprise with the goal of making a profit for the investor and developing the enterprise for its owner. It should also take into account the level of investment, which depends on the development of production technology, stability in the political sphere and economy, the magnitude of state taxes and expenditures, various legislative measures and so on. The stability of the level of investment, which, in general, can be used to judge the real economic situation, also depends on the constancy of the above factors.
Gross investment contributes to an increase in the well-being of citizens, since such financing creates new jobs, timely payment of competitive wages, the quality of public services and so on. It is noteworthy that in order to achieve a high level of investment, a stable demand for certain goods or services should be created, but at the same time, during the economic crisis, the same demand drops sharply. In the economy, such a dependence of investments on demand is called the "thrift paradox." As a result of this, gross private investment will have a beneficial effect on the country's economy only if it is possible to create a certain impetus for demand. After this, there is no doubt that with the proper distribution of investment funds, all prerequisites will be created for a stable growth of production and an increase in employment.
In conclusion, it should be emphasized once again that the leadership of each country should carefully monitor the level of the investment climate, as well as attract and interest large investors by all possible means. Gross investments always bring benefits to the state, however, the main thing in this process is their correct distribution in key areas of activity.