The global foreign direct investment market and its development prospects
Abstract. Despite the fact that the acquisition of financial assets without managing the company on a long-term basis is a more comprehensible and simple mechanism, foreign direct investment (FDI), taking into account the risks of participation in business, is a necessity in the implementation of large investment projects using the advantages of the extent`s effect, separating of international product market. High tax rates determine transferring business to countries with the most liberal conditions. Accordingly, FDI has a significant impact on the development of the global economy forming sustainable economic growth. In the course of the scientific work, the perspectives of the development of the international FDI market were determined, taking into account macroeconomic trends and its potential capacity, and by using the opportunities of the digital economy, based on the problems identified during the analysis of the dynamics of global FDI flows in direct dependence on the uncertainty of the international business environment. It`s worth noting that the further growth of foreign capital is impossible without a conscious strategy for the development of foreign economic relations, and investment policies carried out by recipient countries. In the context of the transformation of the economy into a digital reality, in the presence of sanction restrictions, the factors influencing the increase in FDI may also be the possibilities of using digitalization of investment activity processes.
Keywords:foreign direct investment (FDI), investment climate, global economy, digitalization, cryptocur-rencies.
Hightlightts:
- the FDI market is exposed to geopolitical factors that have a significant impact on the global economy;
- the importance of FDI is determined by the possibility of improving the standard of living of the population of recipient countries, in relation to the organization of new industries;
- an actively functioning cryptocurrency market, in which investors transfer their capital to finance the most risky assets, with the existing negative dynamics, requires modern mechanisms that would allow for the growth of investment activity.
Dinara R. Orlova, Elizaveta S. Ushakova - Financial University under Government of Russian Federation, Moscow, Russia