The Organisation for Economic Co-operation and Development explains Foreign Direct Investment as a type of cross-border investment which is made by a resident entity in one economy (the direct investor), with the aim of establishing a lasting interest in an enterprise (the direct investment enterprise) being a resident in an economy other than that of the direct investor. FDI involves a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence of the direct investor on the management of the enterprise. The ownership of 10 per cent of the voting power is regarded as a threshold allowing to qualify an investor as a direct investor.
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