The Analysis and Assesstment of International Capital Flows in the Form of Foreign Direct Investments and Foreign Direct Divestments: The Cases of Latvia and Poland

Decisions to invest, withdraw, or transfer capital in different foreign markets have become a fixed part of management pragmatics in contemporary companies. The results of the 2017 Global Corporate Divestment Study show that multinational enterprises (MNEs) from particular parts of the world tend to see the main reasons behind their decisions on FDI (foreign direct investment) and FD (foreign direct divestment) in a slightly different manner. Insofar as internationalization processes and FDI have been relatively thoroughly studied and discussed in world and Polish literature, the concept of de-internationalization pursued through the prism of divestment still requires further analysis and consideration. The article aims to present the general framework of the process involving FDI, FD, and the major factors behind it in Poland and Latvia. Theoretical considerations are supplemented with the analysis of statistical data coming from the UNCTAD database as well as the database of Poland’s and Latvia’s central banks, illustrating foreign investment flows. The article uses the method of critical analysis of world and Polish literature, analysis of reports on relevant issues, and desk research analysis.