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A Japanese technology firm wants to break into new markets. It plans to spend heavily in...

A Japanese technology firm wants to break into new markets. It plans to spend heavily in several exchanges, buying up large amounts of other companies’ stocks and bonds. Would this be an economic investment or a financial investment?

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Answer #1

An economic investment is a type of investment where purchase is referred and the consumption is not done today but in future for generating wealth. financial investment is a type of investment where the monetary value of a product is purchased keeping in mind that it would be sold in future to generate profit. Sinc here the type of investment the Japanese technology firm is going with is increasing the wealth where investment is mainly for a purpose for the consumption in future this type of investment is actually an economic investment.

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