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.

Question

Quizplus · Accepted Answer

Taking a minority equity interest in the operation allows the firm to maintain some level of control and benefit from the market without fully committing to a long-term presence.

Turnkey Projects, Being Short-Term Propositions, Can Be Disadvantageous for a Firm