Direct Investment

Direct investment is defined in the International Monetary Fund's Balance
of Payments Manual as "investment that is made to acquire a lasting
interest in an enterprise operating in an economy other than that of the
investor, the investor's purpose being to have an effective voice in the
management of the enterprise."

In the United States, direct investment is defined for statistical purposes
as the ownership or control, directly or indirectly, by one person of 10
percent of more of the voting securities of an incorporated business
enterprise or an equivalent interest in an unincorporated business
enterprise. Direct investment transactions are not limited to transactions
in voting securities. The percentage ownership of voting securities is
used to determine if direct investment exists, but once it is determined
that it does, all parent-affiliate transactions, including those not
involving voting securities, are recorded under direct investment.