Turnkey Projects, Being Short-Term Propositions, Can Be Disadvantageous for a Firm

question 39

Multiple Choice

Turnkey projects, being short-term propositions, can be disadvantageous for a firm if a country subsequently proves to be a major market for the output of the process that has been exported. The firm can get around this problem by

• A) selling competitive advantage to competitors.
• B) competing with the local firm in the global market.
• C) taking a minority equity interest in the operation.
• D) withholding vital process technology from the local firm.
• E) establishing a joint venture with a local firm.

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Definitions:

Irrational Thoughts

Thoughts that are not based on reason or clear thinking, often leading to unrealistic expectations or perceptions.

Negative Way

A perspective or approach that tends to focus on the unfavorable aspects of situations or on what can go wrong.

Progressive Muscle Relaxation

A technique involving the sequential tensing and relaxing of muscle groups to reduce stress and promote relaxation.

Systolic Blood Pressure

The pressure in the arteries when the heart beats and fills them with blood.