When multinationals make a project fully operational and train local managers and workers before the owner takes control,they are using which entry-mode strategy?
A)Licensing
B)Franchising
C)Turnkey
D)Direct export

Question

Quizplus · Accepted Answer

The strategy described in the question is turnkey, where the multinational company sets up a project and makes it fully operational before transferring it to the owner. This strategy is commonly used in industries such as construction and infrastructure, where the local owner may not have the expertise to build and operate the project. Licensing involves giving permission to a foreign company to use intellectual property, while franchising involves granting the right to use a business model and brand name. Direct export involves selling goods directly to a foreign market without any intermediaries.  Therefore, turnkey is the best choice for this scenario.

When Multinationals Make a Project Fully Operational and Train Local