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.

---

Definitions:

Crackers

A dry, thin baked food typically made from flour and seasoned.

Utility-maximizing

A principle in economics where consumers aim to get the greatest satisfaction from their spending, given their budget constraint.

Goods

Tangible items that are produced and are capable of being physically delivered to a consumer.

Px(MUx)

This expression denotes the price of a good (Px) multiplied by its marginal utility (MUx), commonly used in economic analysis of consumer choice.