Page 140 - Theoretical and Practical Interpretation of Investment Attractiveness

The experience of developed countries testifies that the attraction of foreign
investments into the economy was a decisive factor in the high level of development of these
countries.
In the world, the competition for placement of investments and attraction of
investments continues fiercely. On the one hand, factors such as the development of
multinational companies, on the other hand, the activation of activities related to the
distribution and redistribution of markets in terms of resource ownership, and thirdly, the high
impact of the financial crisis surrounding the world in the context of globalization, and the
instability of political situations are playing a decisive role in the decisions of investors.
An investor who seeks a certain profit in the future takes the risk of sacrificing an
appropriate part of his capital today. For this, the investor needs to analyze the international
situation, the economic and social trends in the investment market, and follow the decisions
made by the governments in the economic, financial, social and political spheres.
It is possible to distinguish three groups of reasons for establishing an enterprise with
participation of foreign investments. These include:
Internal causes:
⃰ Using the created investment environment;
⃰ mastering new methods of management;
⃰ achieving a modern and most convenient arrangement;
⃰ expand effective use of local labor resources;
⃰ acceleration of foreign market penetration;
⃰ expanding social, cultural and political knowledge;
⃰ employee training.
External causes:
⃰ entering the world market;
⃰ healthy and effective competitive environment;
⃰ softening of political tensions;
⃰ requirements of local authorities.
Strategic reasons:
⃰ possibility of using modern business methods in the country;
⃰ having a solid base of raw materials;
⃰ technology transfer;
⃰ consists of expanding production 154
The only reason for importing and exporting foreign investments is to increase the
income of corporations (investors) and reduce risks. The activation of foreign investments is
influenced by the increase in the economic efficiency and profit margin of multinational
companies (TNCs). Among the macroeconomic factors that affect the export and import of
foreign investments, it is appropriate to cite the following:

154 Маҳмудов Н.М, Маджидов Ш.А. Инвестицияларни ташкил этиш ва молиялаштириш. Ўқув қўлланма. – Т.:
ТДИУ, 2010. 89-90-б.
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