Which of the Following Is an Advantage of Turnkey Projects

question 68

Multiple Choice

Which of the following is an advantage of turnkey projects as a mode of entry into foreign markets?

• A) It helps create competition which in turn increases the quality of production.
• B) It can be less risky than conventional FDI.
• C) It is an ideal way to establish a long-term presence in a foreign country.
• D) It helps protect the competitive advantage of process technology.
• E) The firm that enters into a turnkey project with a foreign enterprise avoids giving rise to potential competitors.

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Definitions:

Perfectly Inelastic

Perfectly inelastic describes a market situation where the demand for a product does not change in response to a change in price.

Upsloping

Characteristic of a curve or line that rises as it moves to the right, often used in economics to describe certain supply curves or cost functions.

Incentive Function

The role of incentives in influencing the behavior and decisions of individuals or organizations.

Competitive Markets

Markets characterized by a large number of buyers and sellers, where no single entity controls the market prices.