In International Dealings,turnkey Operations Are

question 71

Multiple Choice

In international dealings,turnkey operations are

• A) a way in which an MNC may contract with a foreign government or local firm to trade raw materials for certain resources belonging to the MNC.
• B) a way in which an MNC can take total control of operations by either starting a business from scratch or acquiring a firm already established in the host country.
• C) when a corporation chooses to build a facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire a workforce.
• D) when an MNC has a large amount of management talent available and chooses to use its personnel to assist a firm in a host country for a specified fee and period of time.
• E) contracting for construction of operating facilities in exchange for a fee.

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Definitions:

Discount Rate

The rate of interest applied to loans provided to commercial banks and other financial institutions by the Federal Reserve through its discount window.

Compounded Annually

Interest calculation method where interest is added to the principal sum at the end of each year, and the subsequent interest calculation includes the previously accumulated interest.

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding.