EVOLUTION OF FOREIGN CAPITAL LOCALIZATION FORMS IN THE MODERN ECONOMY

Abstract

The article is devoted to the highly relevant problem of the evolution of foreign capital localization forms. A comprehensive analysis of theoretical approaches to explaining the motives, goals, and specific features of foreign capital allocation has been carried out. It is determined that in the context of escalating security issues, geoeconomic instability, trade wars, and the rise of neo-protectionism, international companies, when choosing approaches to foreign capital localization, primarily focus on ensuring the resilience of reproduction processes and the institutional proximity of the host environment. The purpose of the article is to deepen the theoretical foundations of foreign capital localization and to improve the approaches to its classification, taking into account the evolutionary dynamics and the modern conditions of global economic development. Based on the results of the study, an evolutionary-matrix model of the transformation of foreign capital localization forms has been developed and theoretically justified. The proposed framework is based on a two-dimensional matrix approach. The vertical dimension reflects the evolution of investment forms, encompassing three distinct components: traditional equity forms, non-equity forms of international production, and hybrid and ecosystem forms. The horizontal dimension characterizes the depth of foreign capital localization and is divided into three consecutive levels: market-resource localization, production-operational localization, and deep innovation-technological localization. The research proves that there is an observable diversification of control forms and an increasing role of non-equity and network mechanisms. Furthermore, the results highlight a conceptual shift in spatial organization from global strategies aimed primarily at cost minimization to localization models based firmly on geopolitical and institutional proximity. The highest level of systemic integration of foreign business into the host economy is achieved through network coordination, participation in joint ventures, strategic technological alliances, and innovation clusters. Consequently, traditional criteria of global efficiency are giving way to the imperatives of national security and the guarantee of supply chain stability, which requires a transition from linear expansion to deep systemic integration.