THE NECESSITY AND IMPORTANCE OF INSURING FOREIGN INVESTMENTS
DOI:
https://doi.org/10.55640/Keywords:
foreign investment, investment insurance, political risk, economic risk, investor protection, investment climate, risk management, foreign direct investment (FDI), sustainable development, economic growth.Abstract
Foreign investment plays a crucial role in accelerating economic growth, promoting technological innovation, creating employment opportunities, and enhancing international economic cooperation. However, foreign investors often face various political, economic, legal, and commercial risks that may negatively affect the security and profitability of their investments. In this context, investment insurance serves as an essential mechanism for protecting investors against potential losses arising from unforeseen events. This article examines the necessity and significance of foreign investment insurance, analyzes the major risks associated with foreign investments, and evaluates the role of insurance mechanisms in improving the investment climate. The study also highlights international practices in investment insurance and discusses their relevance for developing economies. The findings indicate that an effective investment insurance system contributes to increasing investor confidence, reducing investment risks, attracting sustainable foreign capital, and supporting long-term economic development.
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