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THE ADVANTAGES AND DISADVANTAGES IN ATTRACTING FOREIGN DIRECT INVESTMENT FOR UKRAINE

Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.1, No. 33)

Publication Date:

Authors : ; ; ;

Page : 89-86

Keywords : foreign direct investment; host country; the problems of attracting foreign direct investment; advantages and disadvantages of attracting direct foreign investment;

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Abstract

The article identified that the volume of foreign direct investment is one of the main indicators, which characterizes the degree of integration of the country and its regions in the international community. This rate depends on the attractiveness of the object of investment or the level of investment risk. The obtaining of both foreign and domestic investment, namely, the conditions of their involvement are factors that characterize the investment activity as a whole in the country and among its regions and promote the further development of foreign general economic relations. It was defined the role of foreign direct investment in the international investment market, which is manifested in the promotion of revitalization of investment process, stimulation of capital contribution in material and technical basis of the country, the effect on the efficient use of national resources, lead to the replacement of the least efficient domestic firms into the foreign which are more cost- effective, increase the productivity and average income per capita in the host country, increase the competition in the national market due to the arrival of foreign companies, stimulate the development of export products, increase the volume of the trade among the countries, integrate the enter of the national economy into the world community. Investment inflow in the economy of host country is definitely a positive factor. Domestic investment are far more attractive than external, because they are not burdened by those huge problems and inconveniences that are associated with the expansion of western capital. But today the ability to mobilize internal investment resources in Ukraine is much lower than in the developed countries. So, we based on existing capacities which also have many advantages. For many countries exactly the international investment activity defines the conditions for economic development. This question is especially noticeable for countries with the low level of economic development, including Ukraine. For such states, foreign investment occupy a significant place among the sources of resources for the transformation of the economy. But in the implementation of foreign direct investment the certain obstacles in the host country may arise and complicate this process for the exporter's country investment. The authors made their own generalizations and identified the main advantages and disadvantages of FDI and established that FDI can manifest themselves both positively and negatively.

Last modified: 2021-03-18 22:47:36