The decision to invest is one of the most difficult economic decisions and the most dangerous, because it is associated with many factors and variables, which are often difficult to predict their behavior and development trends.
Foreign investment is the vital and effective element to achieve economic and social development, since any initial increase in investment will lead to double and cumulative increases in the interior through the so-called investment multiplier, and an increase in income must go in part to Increase investment through the so-called accelerator.
Investment has received great attention in the economic development literature because it is one of the factors that affects the national product, which in turn stimulates the demand for producer goods, just as fluctuations in investment affect income and income. job.
The investment field represents the type or nature of the activity in which the investor wishes to invest his money to obtain a return, that is, the entity or space in which the investor intends to invest his money. When we say national and foreign investments we refer to investment, while when we say real estate or securities, we define the tool used.
In short, when we talk about the investment field, we refer to a certain economic sector, while we refer to the investment tool when we talk about the origin of financial or real assets.
It seems that investment is naturally directed towards countries whose currency is strong and at a constant high level or at least does not fall in the short term and not towards countries suffering from rapid inflation and currency collapse, but this rule does not Is fixed. all circumstances and in all places. It is enough for the investor to enter his money in the currency of that country (that is, the country with a strong currency) and recover it after a period to find that the value of his money has increased, except for the profit that came to him during those years. cities if you were a citizen of those countries that melt their currency and raise inflation rates.
In most cases, investment in tourism and travel depends on the same business principles as in other economic sectors. But in some cases the investment in the tourism sector is made for non-commercial reasons as in the following cases:
1. Many countries invest in the tourism industry for social and environmental reasons rather than for purely commercial purposes.
2. In many cases, institutions such as banks invest in the tourism sector for non-commercial purposes, but more importantly, the substantial growth in the equity value of the property is compared to those assets whose value decreases over time.
Some investments are made for lifestyle reasons. Some people buy yachts, a leisure estate, horseback riding, and leisure centers according to their lifestyle for individual or social reasons.
Internationalization has historically taken place in the economy that exchanges goods internationally. In other words, the free market preceded the capitalist economy. This internationalization of economic life represents an objective trend towards the transformation of closed domestic markets into open markets worldwide. The collapse of the feudal system and the growing importance of international trade, in the 16th century to the emergence of elements of business thought whose ideas were crystallized by a group of heterogeneous writers who later called the name of the commercialists (Thomas Mann, Jean Colcier), the issues have crystallized between the two merchants, necessarily the intervention of the state in economic life, to achieve an adequate trade balance that contains a surplus with the increase in the economic strength of the state by increasing its population, achieving an accumulation of money of psychological minerals that is the basis of wealth.