Editing Internationalization (section)

=== Foreign direct investment theory ===
{{Main|Foreign direct investment}}
Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner.<ref name="o'sullivan01">{{cite book |last1 = O'Sullivan |first1 = Arthur |author-link =Arthur O'Sullivan (economist) |first2=Steven M. |last2=Sheffrin |title = Economics: Principles in Action |url = https://archive.org/details/economicsprincip00osul |url-access = limited |publisher = Pearson Prentice Hall |year = 2003 |location = Upper Saddle River, New Jersey 07458 |page = [https://archive.org/details/economicsprincip00osul/page/n567 551] |isbn = 0-13-063085-3}}</ref> Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor.<ref>''Foreign Direct Investment'', United Nations Conference on Trade and Development, www.unctad.org</ref> The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a [[multinational corporation]] (MNC). In order to qualify as FDI the investment must afford the parent enterprise ''control'' over its foreign affiliate. The [[International Monetary Fund]] (IMF) defines control in this case as owning 10% or more of the ordinary shares or voting power of an [[Incorporation (business)|incorporated]] firm or its equivalent for an unincorporated firm; lower ownership shares are known as [[portfolio investment]].<ref>[[International Monetary Fund]], 1993. Balance of Payments Manual, fifth edition (Washington, D.C.)</ref>