Which of the Following Statements Is True of Turnkey Projects

question 23

Multiple Choice

Which of the following statements is true of turnkey projects?

• A) Turnkey projects are most common in industries which use simple, inexpensive production technologies.
• B) A turnkey strategy can be more risky than conventional FDI.
• 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.

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Definitions:

Uninhibited

Characterized by a lack of restraint or inhibition, often resulting in spontaneous and free-spirited behavior.

Combative

Exhibiting readiness or eagerness to fight or be aggressive.

Deindividuation

A psychological state characterized by reduced self-awareness and diminished social identity, leading to uninhibited and sometimes antisocial behavior.

Validity Effect

The tendency to believe information is correct or valid simply because it has been repeated many times.