In which of the following modes of entry into foreign markets does a firm agree to set up an operating plant for a foreign client and hand over the plant when it is fully operational?
A)Franchising agreement
B)Turnkey project
C)Licensing agreement
D)Wholly owned subsidiary
E)Joint venture

Question

Quizplus · Accepted Answer

In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. At completion of the contract, the foreign client is handed the "key" to a plant that is ready for full operation-hence, the term turnkey.

In Which of the Following Modes of Entry into Foreign