Capital goods are physical assets that a company uses in the production process to manufacture products and services. These goods are not finished products but are essential for creating them. Examples of capital goods include machinery, tools, buildings, and equipment. They are typically long-term investments that help businesses operate efficiently and increase productivity. Unlike consumer goods, which are sold directly to consumers, capital goods are used by businesses to produce other goods. Investing in capital goods can lead to increased production capacity and improved quality of products. This, in turn, can enhance a company's profitability and competitiveness in the market.