Page 142 - Theoretical and Practical Interpretation of Investment Attractiveness

2. Size of national branches. The large number of corporation branches and their
subordinate units within the republic ensures a high volume of direct investment imports.
3. Production cost. There is an inverse relationship between the level of production
costs in the receiving country and the volume of direct investment imports.
4. Security level of the domestic goods market. High protection of the domestic goods
market (by regulation of customs tariffs) leads to an increase in the flow of investment imports.
5. Market size. There is a direct relationship between the size of the country's domestic
market and the import of investments.
6. Other factors. Specialization of industry in export at the expense of direct foreign
investments, availability of state programs aimed at ensuring socio-economic development of
the country.
In addition to directing the flow of foreign direct investments to the country's economy,
social and political issues are also resolved. In the context of globalization, investors'
decisions are significantly influenced not only by economic benefits, but also by social
benefits.
There are 6 organizational and legal forms of investing the funds of corporations
abroad and occupying foreign markets:
- establishing a private enterprise (wholly-owned operations);
- acquisitions of an operating enterprise;
- joint ventures;
- issuance of license or franchise
- distribution or agency agreement;
- establishment of representative office.
Today, several forms of attracting foreign investments are used in our republic. They
are shown in Figure 4.1.1 below.
The economic policy carried out in the republic envisages the acceleration of the
process of integration into the world economic community not only in terms of the structural
structure of the state, but also at the level of the private sector.
Establishment of enterprises with participation of foreign investments includes the
following stages: taking into account the reasons for the establishment of the enterprise;
choosing a reliable partner; making a decision on establishing an enterprise with foreign
investments.
It goes without saying that there are both positive and negative factors influencing the
investment climate. Grouping them can be interpreted as follows (Figure 4.1.2). The country's
political system and macroeconomic stability, the creation of legal guarantees that protect the
interests of investors. Also, the availability of raw material resources, the development of
favorable infrastructure for the organization of production and its sale, and the level of tax
and customs benefits provided for them.

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