... to the IMF BPM5, paragraph 359, FDI is the category of international investment that reflects the objective of a resident entity in one economy ("direct investor" or parent enterprise) obtaining a 'lasting interest' and control in an enterprise resident in another economy ("direct investment enterprise"). The "lasting interest" implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence on the management of the latter. Direct investment involves both the initial transaction establishing the relationship between the investor and the enterprise and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated. As mentioned by Weigel (1997) during the last two decades, foreign direct investment has become the largest source of external funding for investment in developing countries. As social and economic events bring about unraveling opportunities in the big emerging market (BEM), many multinational ...

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