Foreign Capital

Foreign Capital Capital formation in a country can also take place with the help of foreign capital, i.e., foreign savings.Foreign capital can take the form of (a) direct private investment by foreigners. (b) loans or grants by foreign governments, (c) loans by...

Mobilisation of Savings

Mobilization of Savings The next step in the process of capital formation is that the saving of the households must be mobilized and transferred to businessmen or entrepreneurs who require them for investment In the capital market funds are supplied by the individual...

Meaning of Capital Formation

Meaning of Capital Formation Capital formation means the increase in the stock or real capital in a country. In other Capital Formation involves making of more capital goods such  as machines, tools, factories, transport equipment, materials, electricity, etc., which...

Importance of Capital

Importance of Capital Capital plays a vital role in the modem productive system. Production without capital is bard for us even to imagine. Nature cannot furnish goods and materials to man unless he has the tools and machines. Because of its strategic role in raising...

Decentralisation of Industry

Decentralization of Industry Several developments have taken place in modern times. which have plucked out old industries from their native soil and planted them in other lands. The development in the means importation is one such factor. This development is really...

Causes of Further Concentration

Causes of Further Concentration After an industry has got going in a certain place,  then has a tendency to stick to and further gravitate to that place, If any new entrepreneur wants to enter this industry. he. too. will go to that place to start his business rather...