Term:
Related enterprises
Definition:
Related enterprises are those where there exists a direct investment relationship. BPM5 defines the direct investment relationship as ownership, by a direct investor resident in one economy, of 10 percent or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise) of an enterprise resident of another economy. Further, direct investment enterprises comprise those entities that are either directly or indirectly owned by the direct investor.
Domain:
International Trade
Source:
OECD glossary