Investment in international business

1. Investment in international business

Vladimir Kanshaev

2. 1. What foreign investments are needed for

Foreign investment
Real investment
Intellectual
investment
Portfolio
investments
Company with foreign investments
Net profit
growth
Growth equity
Diversification
Improving the
company's
image
Growth of the market value of the company (EBITDA)

3. 20 largest transnational corporations in 2017

4.

Direct investments in Russia, million $ USA
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0

5. 2. Conditions for foreign investment

• Economic, financial and political stability
• Peculiarities of legislation
• Market size and presence (absence) of administrative
barriers
• The cost of the factors of production
• National currency rate
• Geographical location
• Linguistic and cultural particularities

6. 3. The main forms of foreign investment in the modern world economy

• Joint company
• Leasing
• Licensing (sale of "know-how" to the foreign partner,
technologies, scientific developments)
• Franchise
• Joint production
• Subcontract
• Construction of plants

7.

Direct investments in Russia in 2017 on types of
economic activities, million $ USA
9%
EXTRACTION OF MINERALS
20%
4%
MANUFACTURING ACTIVITY
CONSTRUCTION
12%
TRADE WHOLESALE AND RETAIL
2%
TRANSPORT AND STORAGE
1%
ACTIVITIES IN THE FIELD OF INFORMATION AND
COMMUNICATION
23%
ACTIVITIES FINANCIAL AND INSURANCE
ACTIVITIES REAL ESTATE TRANSACTIONS
24%
5%
ACTIVITIES PROFESSIONAL, SCIENTIFIC AND
TECHNICAL

8.

Types of investments in the Russian economy in
2016-2017, million $ USA
12%
Investments in fixed assets
1%
6% 1%
11%
Buy/sell new shares
16%
39%
38%
Reinvestment of income
Mergers and acquisitions
25%
24%
Loans from foreign co-owners
13%
14%
Arrears in the payment of
dividends

9. 4. The role and specificity of foreign investment in the development of the world economy

• Principal investors – transnational corporations (TNCs)
• They are one of the driving forces of globalization
• Modernization and development of national economies
• Ensure international movement and redistribution of capital
• Able to identify regional development trends

10. Thank you for listening