Why is investment in capital goods important for a country like Japan? Japan's economy depends heavily on industry and must be modern to be competitive. Japan needs investment in capital goods to develop its rich natural resources. Investment in capital goods makes up for a poor literacy rate in Japan. Investment in capital goods makes overseas trade unnecessary.

Japan's economy depends heavily on industry and must be modern to be competitive.

Explanation:

Capital goods are referred to as the physical assets which are utilized during production process and they're simply used to produce other goods. Examples of capital goods are machinery, buildings, vehicles etc.

Investment in capital goods is important for a country like Japan because the economy of Japan depends heavily on industry and must be modern to be competitive. It is a highly industrialized country and must continually invest in order to keep up with other nations.

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