Financial Globalization: Threats and Advan-Tages for Investment Safety of Ukraine

Problem statement. The personal touch of contemporaneity is inten-sive development of processes of globalization with bringing in of national economies in the world economic system, strengthening of their mutual dependence. The reflection of these processes was become by internation-alization and hasty growth of financial markets. The process of financial globalization opened the new ways of motion of capitals to the financial market of Ukraine, including on such segment of market, as an investment.
Research objective. Revealing of essence, objective bases and con-tradictions of financial globalisation, and also definition of the basic threats and advantages of influence of financial globalisation on investment safety of Ukraine.
Degree of a readiness of a problem. Works of many scientists-economists are devoted studying of problems of globalisation. These are Abalkina L.I., Bulatova A.S., Dolgova of S.I., Glazyev S.Y., Kochetova E.G., Mysljaevoj I.N., Osmovoj M. N, Pivovarovoj M. A, J. M.Keynes, C.P.Kindlebergera, A.Kejrnkrossa, V.Lenin, K.Marx, J.S.Mill, R.Nurke, B.Olina, A.Ragmena, S.Hammer.
Researches of processes of financial globalization led to forming of two basic approaches – supporters and critics of globalization. Accordingly, attitude toward the processes of financial globalization is different – from positive in obedience to which financial globalization creates numerous benefits, to negative in obedience to which the benefits of financial globalization are appropriated by a two-bit economic the developed coun-tries, and for countries which develop, globalization has investigation of increase of dependence on world financial markets.
As a result of processes of economic and financial globalization an obvious socio-economic break was formed between the small group of post-industrial countries (“by global leaders”) and other countries of the world (“by global outsiders”). It is the variety of system asymmetry of economic development, which increases as a result of global interdepend-ence of financial markets. Its basic display is development of financial markets. Free motion of capitals is instrumental in it, unlike limitations on the markets of commodities, labour force and non-financial services.
Overall, the global financial market development aimed to increasingly reduce the real economic sector and deregulation of their activity on the part of individual Governments and international organizations. Therefore, financial globalization is developing an uncontrolled manner that constitutes a real threat to economic stability around the world. Result of investigation of processes of financial globalization that has increased in recent years attention to the problems of globalization, as it became clear that the simplified view of economic globalization led to at-tempts to transfer Western institutions and economic mechanisms in pe-ripheral countries. Overall complexity of financial markets and predictabil-ity of the global financial system increases the instability of the system and increase the risks inherent in this complex system. Doubt that financial globalization increases the general interdependence of financial systems and their complications generate instability of financial markets. Therefore, even economically developed countries cannot be free from increased risks arising from financial globalization [1]. Therefore, integration of national financial markets as a result of fi-nancial globalization than advantages in attracting investment to developing countries and countries with economies in transition is the cause of increase of the general instability in world financial markets.
Globalization processes have increased disparities of national financial markets; it also becomes a factor of international financial crises. Overall, the result of financial globalization is not only the likelihood of financial crises, but also increasing the impact of these crises in other countries. Features of the international movement of capital in conditions of globalization are that the global financial market growing diversification of financial instruments and the distribution channels of investment, there are new patterns of investment. Capital has become internationalized, but monetary and financial sys-tems in some states remain national. On the one hand, freedom of move-ment of unprecedented financial flows has increased, creating a clear benefit to investors. On the other hand, this freedom of capital movements was the main factor of instability in world financial markets and leads to him on the crisis. This globalization of capital is a prerequisite for instability in world financial markets, provoking a crisis in developing countries [2].
Global movement of financial capital usually comes from the centre to the periphery during the economic recovery, but in case of a sign of loss of capital begins to flow rapidly in the opposite direction, in more stable areas of the world economy. Although the crisis may have a significant impact on financial markets of all states including the economically developed, they most affect the markets of developing countries and countries in transition, the housekeeper, as governments and central banks of these countries are not able in the event of a crisis influence on changes in exchange rates or interest rates. Economic globalization reduces the capacity of national states affect the state's own financial markets. So blurred basic economic functions of the national state, which leads to a dramatic confrontation between national economic institutions and global economic environment with its main actors - multinational corporations and international economic or-ganizations. Control of the national economies of many countries are gradually moving to multinationals and international organizations which have goals that might conflict with national interests of sovereign states, which makes clear threat to their economic safety.
So one of the consequences of financial globalization has been declin-ing capacity of the national state to control economic and financial transac-tions. This leads to lower economic value of the state and limit the overall ability of the state to regulate economic processes. On the one hand, globalization promotes the tendencies to centraliza-tion and unification of the world economy, resulting in various countries found common trends, as economic structures undergo a unification. On the other hand, globalization leads to resistance from those of national states. The main argument of this resistance is the uneven distribution of the benefits offered by globalization for the benefit of a small number of developed countries (primarily USA). Overall, the global scale of capital markets and currency markets complicates the issue of sovereignty of na-tion states and of their independent economic policy [3]. From 1997 in Ukraine to observe a steady increase in foreign direct investment. Thus much of the profit is exported from Ukraine to invest in offshore areas or in economically developed countries, countries where capital is protected from the risks (according to IMF, Ukraine exported an-nually with not less than $ 1 billion.). Free competition in the markets long-term capital is often not the po-litical objectives of states, directed investment, and if state authorities do not control the conditions under which the rendered investments, long-term capital markets seek to maximize return on investment with minimal costs.
In recent years, foreign capital would come to Ukraine mainly through the mechanisms of debt financing and foreign direct investment. Private foreign borrowing were mainly short-term. Thus Ukraine's foreign debt tends to decrease, and his structure has undergone positive changes (such as expanding cooperation with the operators of international capital mar- kets by issuing Eurobonds) [4]. On the one hand, the process of financial globalization has created many economic benefits (to stimulate the free movement of capital, overall increase in the level of freedom of entrepreneurship and economic growth, increased investments, etc.), on the other - creates new threats to economic security (because of the increased inequality between countries, the general growth of complexity and instability of financial markets, and the quick spread of the crisis between the countries), increasing the instability of national economic and financial systems and their dependence on the global financial market. 1. Financial globalization poses to the economy of Ukraine are impor-tant benefits which consist in:
- expanding relationships with major global financial market partici-pants
- TNCs and international financial institutions
- to increase investment (which are governed primarily global TNCs)
- increase in financial assistance from international financial organiza-tions (including IMF)
- increasing access to new technologies, individual transactions in the financial technology market.
2. Financial globalization poses to the economy of Ukraine serious risks and threats, including:
- the benefits of financial globalization are unevenly distributed, and economically developed countries have more opportunities to use them than countries with transition economies, in particular, Ukraine;
- advances in the development of global financial markets more de-pendent countries with transitive economy from changes in the global market, and the potential influence of the Ukrainian state with the reduced dependence;
- the dependence of national financial market from global processes strengthens capital transfers, increasing foreign debt and, therefore, may lead to loss of economic sovereignty;
- increasing complexity of global financial market instability that in-creases the overall system, and mobility of financial capital is a prerequisite for financial crisis relationships through which national and global financial markets may spread in Ukraine. One of the main tasks of the state under conditions of financial glob-alization - the effective use of the benefits of integration into the global fi-nancial market and simultaneously limit the consequences of such integra-tion. For this we need not only a detailed analysis of processes in global financial markets, and forecasting trends and effective future functioning of this market and its impact on national financial markets. Managing globalization should be based on regulatory functions of national and international economic institutions that have to coordinate regulatory activities of national states. Therefore, Ukraine's integration into world and European financial markets need to develop their own strategies of the national financial market, which should be based on the use of mod-ern financial and credit technology, adapted to the specific conditions of national economy, and harmonization of Ukrainian legislation on financial markets with European and international legislation.

List of sources
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3. Human Development Report, 2007. – N.Y.: UNDP, 1999. – P. 2.
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