A measure of the value
of direct investors’ equity in, and net outstanding loans to, their
affiliates in which the equity portion of the position is valued
based on the current cost of plant and equipment, land, and
inventories. This measure values the direct investors’ shares of the
affiliates’ investment in plant and equipment, using the current
cost of capital equipment; in land, using general price indexes; and
in inventories, using estimates of their replacement cost.
Related terms: direct
investment,
direct
investment position,
direct
investment position at historical cost,
direct
investment position at market value.
