Turnkey Projects Are a Short-Term Proposition

question 124

Multiple Choice

Turnkey projects are a short-term proposition.This can be a disadvantage for the firm if that 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 potential or actual competitors.
• B)competing with the client firm in the world market.
• C)taking a minority equity interest in the operation.
• D)withholding vital process technology from the client company.

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Definitions:

Rayovac

A brand known for manufacturing batteries and lighting products.

Support Products

Items that are necessary for the use of a main product or that enhance its functionality, but are not the primary product itself.

Industrial Services

Services provided to other businesses in the industrial sector, including maintenance, repair, and operations support.

Accessory Equipment

Auxiliary devices or attachments that are not integral to the main system but enhance its functionality or usability.