Investment opportunities and risks in international economic relations

Abstract

Empirical confirmation of the weakness of the investment environment in Ukraine is substantiated. The processes of internationalization and globalization at the current stage of development regarding the strengthening of the interdependence of the national economy are determined. The article examines the essence of investment risk, summarizes its classification and characterizes its types, analyzes their impact on the implementation of investment activities and on the implementation of an investment project in particular. In addition, the article substantiates the expediency of the investment risk management process, describes the sequence of its main stages and considers the main aspects and principles of their implementation. The purpose of the work can be formulated as clarifying the essence of investment risk, its types and the main factors that determine them, developing a scientifically based methodology for identifying and evaluating investment opportunities and establishing recommendations for their management in the context of international activity. In the course of the research, it was proved that today globalization should be considered as an objective process of development of direct foreign investments. The fact that foreign direct investment began to occupy a leading place in all forms of international economic relations is, in fact, one of the signs of the globalization of the investment process. This indicates that the formation of the world economy has passed from the stage of the world market to the stage of world production. According to economic theory, foreign investment and foreign trade are alternative and complementary. In modern conditions, the flow of direct foreign investments as a system-forming factor of world production is more important than the practice of foreign trade. It is also determined that one of the main problems that require an urgent solution in the process of investment activity is the occurrence of investment risk. It is proven that in order to avoid undesirable results, investors need to identify investment risks, analyze and evaluate the consequences of risk events and take measures to minimize the negative consequences of investment risks.