FDI can be made in several ways.
First, and most likely, it may involve
parent enterprises injecting equity capital by purchasing shares in foreign
affiliates. Second, it may take the form
of reinvesting the affiliate’s earnings.
Third, it may entail short- or long-term
lending between parents and affiliates.
To be categorized as a multinational
enterprise for inclusion in FDI data,
the parent must hold a minimum equity stake of 10 percent in the affiliat