Global capital investment is the type of funds investment in which firm aims to further develop their objectives. The term is also used to refers to firm’s owning fixed or capital assets which includes manufacturing of the machinery or plans that might turn out to be more productive in coming years. There are various sources of global capital investments which include banks, equity investors, financial institutions, angel investors and venture capital.
The main use of the global capital investment is the consumption of the capital for using it in long term. Companies aim to expand their existing business in the future by making continual global capital investment. Investing in the fixed assets to increase the operational capacity, hold a large share of market and generating more revenue, is one of the major type of the global capital investment. The companies also make global capital investment in other companies in form of the equity stakes. The reason of this type of investment is to build business partnership.
The decision about the global capital investment is a conscious decision made by the company. They pre-decide type and amount of global capital investment.
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