The article reveals the essence of the investment climate, the quantitative and qualitative parameters of which form the conditions of attractiveness / unattractiveness of the national economy for internal and external investors. We have summarized the motives of exporters and importers of capital, which are represented by the desire of investors to place capital in a particular country or industry, where it will ensure maximum profit, minimize costs and diversify risks. Also, we have examined the main and indirect effects of foreign direct investment. The authors described indirect horizontal and vertical spillover effects, among which are “the demonstration effect”, “the effect of competition” and “the effect of overflow of knowledge on the labor market”. Finally, we have identified the positive and negative consequences of attracting foreign direct investment in the economy of the recipient country on the economic, monetary, technological, social, and environmental areas. Also, we have emphasized that the identified advantages and disadvantages of attracting FDI into the economy of the recipient country are possible in theoretical terms, but are not automatically realized. Each country should evaluate its own internal socio-economic situation, the feasibility of attracting FDI and regulate them in order to maximize benefits and minimize the possible negative impact of the international investment process.