Direct investment

What is Direct investment?

Direct investment meaning Investment in which a resident of one country obtains a lasting interest in, and a degree of influence over, the management of a business enterprise in another country. In the United States, the criterion used to distinguish direct investment from other types of investment is ownership of at least 10 percent of the voting securities of an incorporated business enterprise or an equivalent ownership interest of an unincorporated business enterprise. Related terms: foreign direct investment in the United States, U.S. direct investment abroad.


reference: BEA Bureau of Economic Analysis. US Department of Commerce