Expectations

The third element in the determination of investment is profit expectations and business confidence. Investment is, above all, a gamble on the future, a bet that the revenue from an investment will exceed its costs. If businesses are concerned that political conditions in Russia are unstable, they will be reluctant to invest there. Conversely, because businesses believe (rightly or wrongly) that. Internet” .commerce will be an important feature of the distribution network, they are investing heavily in that sector.