Abstract. Foreign investment as an important factor of the countries' international economic development has been considered in the article. The condition of foreign direct investment (FDI) and changes in national investment policies in the world and Ukraine for 2001-2016 years has been analyzed. The main advantages achieved by attracting foreign direct investments have been determined. Further research questions in the area of foreign investment are to improve the legislative framework and a mechanism of risk insurance for foreign investors.

Keywords: foreign investment, foreign direct investment (FDI), investment climate, economics, economic growth, development, foreign trade activity.