Complex and expensive technology is needed to develop products at Feel-Better Pharmaceuticals based in Austin, Texas. For this reason, the company plans to have a plant built in Portugal that is ready for full operation and will be used for products sold in Europe. What type of entry mode is Feel-Better Pharmaceuticals using?
A) wholly owned subsidiary
B) licensing
C) turnkey project
D) franchising
E) direct exporting

Question

Quizplus · Accepted Answer

A turnkey project involves setting up a fully operational facility in a foreign country, which is what Feel-Better Pharmaceuticals is doing by having a plant built in Portugal for their European market.

Complex and Expensive Technology Is Needed to Develop Products at Feel-Better