Components of Balance of International Payments, incurrence of liabilities

1 - Net incurrence of liabilities

'Net incurrence of liabilities' refers to the difference between the incurrence and repayment of liabilities in the Financial Account of the Balance of Payments. A positive sign refers to an increase in Canadian liabilities to non-residents while a negative sign refers to a reduction in Canadian liabilities.

1.1 - Foreign Direct investment, liabilities

'Direct investment liabilities' refers to a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. As well as the equity that gives rise to control or influence, direct investment also includes associated debt (except debt between affiliated financial intermediaries).

1.2 - Foreign portfolio investment

'Foreign portfolio investment' refers to cross-border transactions and positions involving debt or equity securities, other than those included in direct investment or reserve assets. Unlike direct investors, portfolio investors have no significant influence on the operation or management of the enterprises in which they invest.

1.3 - Other foreign investment