What doesn’t kill you makes you stronger— multinational enterprises facing global challenges

Motivation: The activities of multinational enterprises (MNEs) abroad have become a significant theme in international economics, reflecting the growing importance of these enterprises in the global economy. MNEs control approximately 40% of global production, 50–60% of international trade in goods, 80–90% of research and development, and 90% of transnational investment. Their responses to the challenges posed by significant global events are scrutinised across nearly all areas of the international community. Therefore, it is crucial to indicate how these actors respond to events that cause disruption on a global scale. Aim: This article aims to assess the impact of recent events — the COVID-19 pandemic and the war in Ukraine, instigated by the Russian Federation's aggression — on the investment activities of MNEs abroad and the changes in the economic parameters of the world's largest MNEs. Results: The COVID-19 pandemic and the war in Ukraine have reduced investment activities of economic actors in the form of foreign direct investment. The outbreak of the war in Ukraine in 2013 and its subsequent escalation in 2022 were distinctly felt by both the Russian Federation and Ukraine. For Russia, this was associated with the withdrawal of capital by several MNEs, the abandonment of planned investment projects, and sanctions imposed by the country in response to Western actions. The decline in foreign direct investment in Ukraine was primarily due to the high risks associated with the ongoing hostilities. Notably, the COVID-19 pandemic and the escalation of the war in Ukraine have had minimal impact on the reduction in the scale of investment activity abroad for both the world's largest non-financial MNEs and the largest MNEs from developing countries.