If a producer agrees to enter into a management contracting arrangement with a zinc mining operation in Chile,
A) the company should be prepared to invest large amounts in mining facilities.
B) the company should be prepared to send people to Chile.
C) success will depend on how well the Chilean managers know what needs to be done.
D) the company must assume no political problems will arise, otherwise the risk is very high.
E) None of the above is true.

Question

Quizplus · Accepted Answer

If a producer enters into a management contracting arrangement with a zinc mining operation in Chile, they should be prepared to send people to Chile to manage and execute the mining operations. Option A may or may not be necessary depending on the existing facilities. Option C is not necessarily true, as the success of the arrangement depends on the skills and expertise of both parties involved. Option D is also not necessarily true, as political risks can never be entirely ruled out.

If a Producer Agrees to Enter into a Management Contracting