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

A turnkey project involves a firm agreeing to set up and hand over a fully operational plant to a foreign client. This mode of entry is often used in industries such as construction and engineering, where the client may not have the necessary expertise or resources to build the plant themselves. Franchising agreement, licensing agreement, wholly owned subsidiary, and joint venture all involve different levels of ownership and control by the firm in the foreign market, but they do not involve setting up and handing over an operating plant.

In Which of the Following Modes of Entry into Foreign