Economics
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Factors Influencing Business Capital Investment (2019 Update)
- Level:
- AS, A Level, IB, BTEC National, BTEC Tech Award
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 4 Oct 2019
Here is a short revision video looking at some of the key factors that might influence the level of business capital investment.
Summary of key factors
- Rate of growth of market demand
- Borrowing costs (i.e. interest rates on business loans)
- State of business confidence / pessimism
- Rate of corporate taxation on company profits
- Inflation expectations (consider both inflationary and deflationary pressures)
- Pace of technological change and international competition
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