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:

Service Location Decisions

Service location decisions concern determining the most strategic locations for a business's facilities to optimize accessibility for customers and efficiency in operation.

Purchasing Power Analysis

An evaluation of the value of money, in terms of the quantity of goods or services that one unit of money can buy.

Service Organization

A business or entity that provides services as opposed to goods, focusing on meeting the needs of its customers.

Location Analysis Technique

A systematic approach used to determine the most optimal location for a business or facility, considering factors like cost, accessibility, and market demand.