FACTORS INFLUENCING INVESTMENT STRATEGIES OF MNE IN MODERN CONDITIONS

Abstract

Factors influencing investment strategies of multinational enterprises are identified, particularly factors of COVID-19 pandemic, geopolitical stability, and national security. It is revealed that COVID-19 pandemic forces multinational enterprises to transform approaches to investment strategies towards stabilization and diversification of supply chains, robotization of production. It is determined that due to the need to comply with safe working conditions, investment in robotics development become an integral part of investment strategies. It has been determined that the offshoring strategy in the conditions of sustainability of trade and production relations has proved its effectiveness in reducing costs. However, during pandemic or trade war, the offshore strategy is less effective. Prospects of future development of investment strategies are determined, namely reshoring, diversification, regionalization, and replication. It is determined that due to the increase in the level of risks; new investment projects “from scratch” become less attractive. It is determined that multinational enterprises do not want to move production capacities, as it requires significant investments and losses from the relocation of production. It is revealed that geopolitical conflicts may transform investment strategies, stimulating relocation of production, such as reshoring and nearshoring. It has been determined that reshoring and nearshoring do not necessarily increase the stability of supply chains. It is determined that the import of industrial products from China to the USA is declining for several years in a row, and there is a shift of production from China to other countries. It is determined that the strategy of reindustrialization do not necessarily contribute to the growth of industrial production in the United States. It is determined that within the USA there are several problems concerning reindustrialization, including low return on investment in robotization of production and lack of qualified personnel. It is determined that the factor of national security becomes more important for the investment strategies of multinational enterprises in the conditions of unfolding economic contradictions.