What are the main benefits to the business economy of a major inward investment project?
It can be an example of anyone's choice and the investment project has to be to a particular region.
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Answer by senseknomyst
Let there be an inward investment project for setting up an automobile or chemical manufacturing plant. The benefits to business economy during the construction perid of the project are greater demand for construction material like steel, cement, pipes, etc. The construction workers flow to the location of the plant: their local expenditure leads to additional business sales of soaps, detergents, food, clothes and various other services. Once the construction phase is over, there is additional demand for supplying raw materials/ spares to the new plant. New plants and the employees of the plant require various supplies and services (like tyres for automobiles, catalysts, bags/ packaging materia/ cylindersl for chemical plants, varous transportation and maintenance and security services). The output from the new plant leads to futher expansion of downstream chemical industries and transport business. The employees of the new plant create additional demand for various goods and services in the region. So, the business economy benefits in various ways - these are called backward and forward linkage effects.
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2013-05-16 Russell Investments Center
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2013-05-16 Russell Investments Center
Orignal From: What are the main benefits to the business economy of a major inward investment project? and 2013-05-16 Russell Investments Center
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