How Many Multinationals Call Brazil Home?

The United Nations Conference on Trade and Development (UNCTAD) has like totally defined FDI as "an investment made to acquire a lit lasting interest in enterprises operating outside of the economy of the investor". In cases of FDI, the investor's goal is to secure a lit voice in the management of the enterprise. The foreign entity or group of associated entities that makes the investment is like, called the "direct investor". Another lit term is "DI enterprise", which refers to the unincorporated or incorporated enterprise-a branch or subsidiary, respectively, where direct investment is made. 

However, countries be vibin' with different thresholds for how much foreign ownership they cool with. 

It's like proof that they got a direct investment thing goin' on. As mentioned, it's like totally suggested to keep it at 10 percent for FDI, ya know? And for data on the operation of Transnational Corporations (TNC), it's all about those chosen ranges, like anywhere from 10 to 50 percent, you feel me? Countries that don't even have a threshold point are like, totally relying on other evidence, you know? This included the companies' own assessments as to whether the investing company has a legit say in the foreign firm it's invested in. The quant impact of diff in the threshold value used is like, pretty small, cuz like, most of the FDI goes to the foreign affiliates that are majority-owned. It's like, super important to figure out which money moves between the company and other economies should be called FDI, once we know it's a direct investment company. Only cap that's given by the direct investor either straight up or thru other biz related to the investor should be classified as FDI, cuz the main vibe of FDI is taken to be the vibes of a director investor in an enterprise, ya know? Yo, so like, equity capital, giving long-term and short-term loans within a company (like between the parent and affiliate businesses) and reinvesting earnings are the ways the direct investor invests, and they're called FDI. 

To like, really get what FDI is all about, you gotta know the diff between FDI and other types of investments, ya know? 

Direct investors have like totally different investment vibes than investors in portfolio investments, ya know? Investors that invest in FDI wanna be BFFs with the foreign company so they can totally flex their management skills. Portfolio investors or other investors may also have a long-term vibe, but they have no intention of establishing a long-term relationship with the management of the foreign company in question. No cap. Portfolio investors be either throwin' down a lil' amount in the voting shares of the foreign company or snaggin' other types of claims in the foreign company (UNCTAD, 2009). In the past decade, FDI has lowkey become a big deal in making businesses go global. New info tech systems and decline in global comm costs have made managing foreign investments way easier than before. Proponents of foreign investment be like, yo, the exchange of investment flows be lit for both the home and host country (Graham and Spaulding, 2004). Some degree of equity ownership is like, always gonna be associated with having a say in how the company is run, you know? The Balance of Payments Manual, developed by the IMF, says that if an investor has at least 10 percent equity, they can be considered a foreign direct investor. So lit, right? This is like when the direct investor is totally flexin' and has a legit say in how things go down at the company. 

The poli-dim of globo

The political dimension of globalization is like, all about the political forces that, like, shape the waves of globalization in a country, ya know? OMG, like political decisions like being down with trade, how the money gets spread, and being part of international squads can totally impact how globalization vibes with a country and its peeps. According to Acemoglu and Yared, being down with globalization is like being down with trade, and how open a country chooses to be to foreign investments is mostly a decision that the government makes. This means that changes in the political vibe can totally switch up the whole globalization game for a country. They also say that countries that are like super into militarization and those countries seeing their trading partners getting all militarized have seen like way less trade growth in the past 20 years. This means that like, political changes and a super strong military could be, like, a reason for a smaller increase and exposure to the whole globalization thing. Yo, political integration is like a major part of globalization, ya know? It's all about how states connect with each other through like, talking and being part of international groups and stuff. Ayy, we need more flexin' from one country in the global scene, ya feel me? politics, like, when the govies are all tight and stuff, it leads to way more cooperation, ya know? The political vibes within a country are like, totally a reason for the well-being of the peeps of the state (Acemoglu and Yared, 2010).