The government of Ethipeo seeks the help of Newrange Refineries, which has its home base in the country of Lisdon, in building an oil refinery in Ethipeo. Once the setup is complete, technicians from Newrange would require to train their workers at the new oil refinery in Ethipeo. Once all the staff members are trained to operate and maintain the facility, Newrange will hand over the keys to the government of Ethipeo, which would operate it then on. This scenario exemplifies the entry mode of _____.
A) turnkey operation
B) licensing
C) joint venture
D) franchising

Question

Quizplus · Accepted Answer

A turnkey operation involves a contractor agreeing to fully design, construct and equip a business or service facility and turn the project over to the purchaser when it is ready for operation. In this scenario, Newrange Refineries is responsible for building the oil refinery and training the staff in Ethipeo before handing it over to the local government, which aligns with the definition of a turnkey operation.

The Government of Ethipeo Seeks the Help of Newrange Refineries