Global Tendencies of the International Movement of Capital

Abstract

The article examines the global trends of international movementof capital in the form of foreign direct investments, which were characteristic of the period of development of the world economy in 2011–2022, during which the world financial and economic crisis took place and the COVID-2019 pandemic spread internationally. The directions of international expansion of transnational companies are studied in view of their participation in the formation of global value chains, which consistently connected with each other in the global space the types of economic activities for the creation and promotion of products. Based on the analysis of international statistics data, clusters of countries were singled out, which acted in different years as the largest recipients of foreign direct investments and were in the circle of economic interests of large international business. Changes in the direction of foreign direct investment flows of leading transnational corporations are shown and their influence on the geographical localization of production processes within global value chains since the end of the 20th century until now is demonstrated. Special attention is paid to the examination of the forms and directions of international movementof capital in Asian countries, which hold the global leadership in attracting foreign direct investments. In the system of factors that influence the direction of foreign capital movement in the international space, a separate group of factors related to the effect of global transactional risks is singled out. The latter change the direction of foreign direct investment in the global economy and need to be taken into account in the formation of industrial policy by the governments of national economies.

Keywords

• global economy
• transnational corporation
• foreign direct investment
• global value chains
• transactional risks
• financial and economic crisis
• covid-2019 pandemic.