In a _____,a mode of entry into foreign markets,a firm agrees 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

A turnkey project involves a firm setting up a complete operating plant for a foreign client and then handing over the keys to the fully operational facility. This is typically used in cases where the foreign client does not have the expertise or resources to set up the facility themselves. This mode of entry allows the firm to earn revenue from the project while minimizing the risk involved in operating the plant long-term.

In a _____,A Mode of Entry into Foreign Markets,a Firm