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Communication from the IMF - Definition of Foreign Investment
World Trade Organization WT/WGTI/W/61 3 November 1998 (98-4267) Working Group on the Relationship between Trade and Investment Original: English COMMUNICATION FROM THE IMF The following communication, dated 15 October 1998, has been received from the IMF in response to a request made by the Working Group at its meeting of 1-2 October 1998 for information on the IMF definition of foreign investment. _______________ Definition of Foreign Investment The balance-of-payments is a statistical statement that systematically summarizes, for a specific time-period, the economic transactions of an economy with the rest of the world. Transactions, for the most part between residents and nonresidents, consist of those involving goods, services, and income, those involving financial claims on, and liabilities to, the rest of the world; and those classified as transfers. One of the key underlying principles of balance-of-payments is the concept of the ce