Final answer:
Israel's capital goods include machinery, equipment, and infrastructure used for production. The strategic decision to move the capital from Tel Aviv to Jerusalem was a type of capital investment for territorial sovereignty. Capital also refers to the investment necessary for economic development.
Step-by-step explanation:
Capital Goods in Israel
Israel's capital goods can be defined as the machinery, equipment, and infrastructure that are used by the nation for the production of goods and services. This includes tools that evolved from ancient stone implements to modern machines like saws and meat cleavers, transportation equipment like cars and trucks, as well as facilities such as roads, bridges, ports, and airports. In Israel, the government moved its capital from Tel Aviv to Jerusalem, which was a strategic decision known as creating a forward capital. The primary intent behind this move was to assert sovereignty and protect territory, illustrating how the concept of capital extends beyond physical assets to encompass strategic national policy decisions.
On a more microeconomic level, the concept of physical capital per person refers to the quantity and quality of tools and machinery available to help an individual produce a good or service. When it comes to industrialization, a final and crucial factor of production is investment capital from investors, which is necessary for economic development and industrial site location decisions.
Regarding trade, categories like food and beverages, consumer goods, industrial supplies, and capital goods are part of the economic data that reflect a country's economic activity, with capital goods representing significant investments in the economic capacity of the nation.