Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 63 , 28 December 2023
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The Impact of Geopolitical Stability on Foreign Investment and Transnational Corporations: A Case Study of the Russia-Ukraine Conflict
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Abstract
Geopolitical stability plays a pivotal role in shaping the global economic landscape, especially concerning foreign investment and transnational corporations (TNCs). This study delves into the intricate relationship between geopolitical stability and these economic factors, employing a case study of the Russia-Ukraine conflict to exemplify their interplay. The Russia-Ukraine conflict, characterized by territorial disputes and political tensions, has had far-reaching consequences on foreign investment and TNCs operating in the region. This study scrutinizes how the conflict's instability has influenced investment decisions and strategies adopted by TNCs. The research combines quantitative and qualitative methodologies, drawing upon economic data, expert opinions, and corporate case studies. The findings indicate a clear correlation between geopolitical stability and foreign investment. In the context of the Russia-Ukraine conflict, periods of heightened instability have witnessed reduced foreign investment as risk perceptions rise. TNCs, concerned about the security of their assets and profitability, tend to adopt a cautious approach during such times. Conversely, when geopolitical tensions ease, foreign investment tends to rebound. Moreover, this study explores the strategies employed by TNCs to navigate geopolitical instability. Companies often implement risk management protocols, diversify their portfolios, and forge partnerships with local entities to mitigate risks associated with geopolitical instability. This research contributes to the broader understanding of the impact of geopolitical factors on global economics.
Keywords
geopolitics, war, economy
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-227-5
- ISBN (Online)
- 978-1-83558-228-2
- Published Date
- 28 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/63/20231395
- Copyright
- 28 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited