Which of the Following Statements Is True of Turnkey Projects

question 52

Multiple Choice

Which of the following statements is true of turnkey projects?

• A) Turnkey projects are most common in industries that use simple, inexpensive production technologies.
• B) A turnkey strategy can be more risky than conventional FDI, particularly in unstable political environments.
• C) A turnkey strategy is particularly useful where FDI is limited by host-government regulations.
• D) Firms that enter into a turnkey deal have a long-term interest in the foreign country.

---

Definitions:

Nominal GDP

The market value of all finished goods and services produced within a country in a year, not adjusted for inflation.

Real GDP

The total value of all goods and services produced by a country adjusted for inflation, providing a more accurate measure of economic output over time.

Intermediate Goods

Products that are used as inputs in the production of other goods or services and are not final products themselves.

GDP

Gross Domestic Product (GDP) measures the total monetary value of all goods and services produced over a specific time period within a country's borders.