Manual on Statistics of International Trade in Services

Glossary 
Foreign affiliate 
A 
foreign affiliate
is synonymous with a foreign direct investment enterprise. The 
present 
Manual 
makes recommendations on the collection of statistics which focus 
on the activity of foreign affiliates that are 
majority owned
by a direct investor. 
Foreign direct 
investment 
Foreign direct investment
is the category of international investment that reflects 
the objective of a resident entity in one economy to obtain a lasting interest in an 
enterprise resident in another economy. 
Foreign direct 
investment enterprise 
A
 foreign direct investment enterprise
is an incorporated or unincorporated 
enterprise in which a direct investor resident in another economy owns 10 per cent 
or more of the ordinary shares or voting power (for an incorporated enterprise) or 
the equivalent (for an unincorporated enterprise). 
Globalization 
 
The term 
globalization
is generally used to describe an increasing 
internationalization of markets for goods and services, the means of production, 
financial systems, competition, corporations, technology and industries. Among 
other things, this gives rise to increased mobility of capital, faster propagation of 
technological innovations and an increasing interdependency and uniformity of 
national markets. 
Goods 
The 1993 SNA defines
 goods
as physical objects for which a demand exists, over 
which ownership rights can be established and whose ownership can be transferred 
from one institutional unit to another by engaging in transactions on markets; they 
are in demand because they may be used to satisfy the needs or wants of 
households or the community or used to produce other goods or services.