Term:
Direct investment relationship
Definition:
A direct investment relationship is created when an enterprise resident in one economy owns 10 percent or more of the ordinary shares or voting power for an incorporated enterprise, or the equivalent for an unincorporated enterprise, that is resident in another economy. Direct investment enterprises that are considered to be in a direct investment relationship with a direct investor are also considered to be in direct investment relationships with each other
Domain:
Finance
Source:
Report on the Survey of Implementation of Implementation of Methodological Standards for Direct Investment – IMF, OECD, March 2000 – Appendix II: Glossary of Foreign Direct Investment Terms.
