In a portfolio investment ?
Correct answer: D. investors have no control over operations
- A. investors are directly involved in managing the operations
- B. as in direct investment investors export goods and services abroad
- C. investors transfer the technology to local investors
- D. investors have no control over operations
Explanation
Portfolio investment involves buying financial assets without taking managerial control of the enterprise. Direct investment, in contrast, normally gives the investor a significant role in managing operations and may involve technology transfer.
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