Definition: Foreign direct investment enterprise
Foreign direct investment
A foreign direct investment enterprise is an enterprise resident in one economy and in which an investor resident in another economy owns, either directly or indirectly, 10% or more of its voting power if it is incorporated or the equivalent for an unincorporated enterprise.
The numerical threshold of ownership of 10% of the voting power determines the existence of a direct investment relationship between the direct investor and the direct investment enterprise. An ownership of at least 10% of the voting power of the enterprise is regarded as the necessary evidence that the investor has sufficient influence to have an effective voice in its management.
Organisation for Economic Co-operation and Development (OECD), "OECD Benchmark Definition of Foreign Direct Investment, Fourth Edition 2008", Paris, 2008