Investment is the application of economic goods such as natural resources, capital, labor, and intellectual property in productive facilities for the production of goods or service. labor unions, cooperatives, socialist enterprises and socialist states may make investments. A good investment is one that produces goods or services of value for which there is demand, or which returns a profit by some means.
Investing in obsolete products, production facilities which have costs which preclude profit, or for which there is little market for new entrants will result in a loss rather than a profit, and, if money has been borrowed, make it difficult or impossible to pay loans. People and organizations which are not well informed about costs and markets will often have losses if they invest. A country which encourages poor investments will eventually have serious economic problems.