British Airways has an arrangement with a state-owned airline headquartered in Brazil. British Airways provides the Brazilian airline with advice on reservation services and scheduling. Which entry mode for international business is used by British Airways?
A) management contract
B) turnkey project
C) greenfield strategy
D) licensing

Question

Quizplus · Accepted Answer

A management contract is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise which performs the necessary managerial functions in return for a fee. British Airways providing advice on reservation services and scheduling to a Brazilian airline fits this model, as they are essentially managing those aspects of the airline's operations.

British Airways Has an Arrangement with a State-Owned Airline Headquartered