Chapter 6 Media Article

"Investors searching world for opportunities," The Province April 24, 2007.

Just as the article's heading suggests, investors all around the world are looking for commodities and resources to invest in, meaning that there is a large amount of capital available for businesses. The key to acquiring these investment dollars is being able to find "the right people doing the right job and the right asset" and taking advantage of these opportunities. The mining industry in particular is a popular industry which attracts investment from the all around the world. And since there is so much demand for the mining industry, the article suggests that businesses have to be careful in their dealings. When investment from foreign governments and businesses is involved, it is crucial that there is a clear understanding of the situation because countries often change their laws or policies.

When money is invested into the economy, more money is able to circulate through various industries, with more money going to the hands of individuals in the end. As individuals acquire more disposable income to spend, the consumption of goods further triggers the growth of the economy. Also, as businesses have increases in investment, they are able to expand, purchase new equipment, and increase the available job openings in the economy. All of these factors contribute to the increase in gross domestic product, GDP, and indicate that the economy is in good shape. Furthermore, the increase in disposable income and spending by consumers is one example of how aggregate demand is affected which in turn affects the equilibrium RGDP. This change in equilibrium RGDP is advantageous because it helps the economy move towards the state of full employment where resources are fully utilized and the economy is working at its maximum capacity and efficiency.

I think that increased investment in the economy is definitely beneficial for businesses and individuals. Businesses end up having more funds to expand and increase efficiency. As businesses see increases in profit, employment opportunities for individuals will also increase. Moreover, under good economic conditions, I think individuals will end up wanting to spend more instead of save more which will benefit the economy. And also, the increase in spending will have the effect of lowering interest rates in the economy.