A measure of the value of direct investors’ equity in, and net outstanding loans to, their affiliates in which the direct investors’ investment is valued at book value. It largely reflects prices at the time of the investment rather than prices of the current period and is not ordinarily adjusted to reflect the changes in the current costs or the replacement costs of tangible assets or in stock market valuations of firms. Related terms: direct investment, direct investment position, direct investment position at current cost, direct investment position at market value, foreign affiliate, U.S. affiliate.

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