Purchase Solution

Investment Instability

Not what you're looking for?

Ask Custom Question

The Bureau of Economic Analysis provided data for real private nonresidential fixed investment in table form at www.bea.gov. Access the BEA interactively and select National Income and Product Account Tables. Find Table 5.4 "Private Fixed Investment by Type." Has recent real private nonresidential fixed investment been volatile (as measured by percentage change from previous quarters)? Which is the largest component of this type of investment, (1) structures or (2) equipment and software? Which of these two components has been more volatile? How do recent quarterly percentage changes compare with the previous years' changes? Looking at the investment data, what investment forecast would you make for the forthcoming year?

Purchase this Solution
Solution Summary

Changes in real private nonresidential fixed investment are demonstrated.

Solution Preview

Investment Instability--Changes in real private nonresidential fixed investment
<br>----------------------------------------------------------------------
<br> Has recent real private nonresidential fixed investment been volatile (as measured by percentage change from previous quarters)?
<br>
<br>Yes, real private nonresidential fixed investment, as measured as a percentage change from the preceding quarter, has increased only by 5.8% in 2004 Quarter 1, whereas it increased by 10.9% in 2003 Quarter 4 and by 12.8% in 2003 Quarter 3.
<br>------------------------------------------------------------
<br> ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Risks of opening new offices in Brazil, Mexico or Russia

    Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, or military control. Russia would be a good country to use in the context of this example.

  • Indian business risks and investing

    The major risks in many areas, country instability or political instability are not found in India.

  • Political Risks for International Businesses

    This instability that may affect investment returns could have resulted from change in government, legislative bodies, other foreign policy makers, or military control.

  • Economic and political stability

    419303 Emphasize international investment. Economic and political stability are important factors to be considered when finalizing an international investment.

  • International Business Example Questions

    Political instability may also affect companies' profit and return on investment. Some government rules are too strict and may prevent companies from investing in international business (Wartick, Wood, 1998).

  • Deteriorating balance of payments

    This was as a result of Turkey's political instability and low chances of country in projecting long term growth.

  • Polities and Working in a Foreign Country

    Moreover if there is political instability, inefficient governance and judiciary system also affect the business.

  • U.S. net direct investment position

    Political instability can undermine expected returns and ease of repatriation. Look at Venezuela. Assets of foreign companies were forcibly seized. 4. Expected returns.

  • Agricultural development in rural communities

    Policies that encourage investment in agriculture fail when there is political instability. The government can increase the use of high yielding variety of crops and ensure that the seeds are available locally.

View More Related Solutions