Investment is the process of donation of a certain sum of money for the development of a company. Very often people who have skills to become businessmen do not have financial background for it and need investment of some greater companies. The most common targets of investment are small firms and companies related with the information technologies, brand new techniques, medicine and space technologies.
When young professionals manage to create a certain concept of some interesting and probably useful machine or invention, they will have to find a good investor who will help them develop the production and trade of their products. Investors always feel who to give money to, because nobody wants to waste money for nothing. Moreover, the key aim of investment is to receive money back with great percent or become a part-owner of the company.
Today nearly every small firm can not develop without investment, because it is impossible to start business without capital. Investment is always a dangerous risking process, because the investor can lose much having donated a non-profitable firm, which does not have any promises for success. A skilful businessman should be able to predict the future success or failure of the firm and invest only to the most perspective novice firms.
Without investment the small and middle business would be impossible to create, so a future businessman and economist should know everything about this process. A good term paper should be interesting, informative and describe the topic from all sides. It is recommended to read a lot about the topic to understand the definition of the term, realize the structure, types, methods and functions of investment and understand its value for global economics and finance system. Students are supposed to spend much time at the library, in the Internet looking for reliable data on the topic and enriching their knowledge about it.
Evidently, investment and foreign direct investment is a serious topic and it has many advantages and disadvantages and a student has to research the positive and negative sides of investment, support his opinion with trustworthy evidence and offer good methods for the solution to the existing problems.
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