Which foreign market entry strategy has the following disadvantages: lack of long-term market presence, may inadvertently create a competitor, risk selling a firm's competitive advantage?
A)Wholly owned subsidiary
B)Turnkey project
C)Exporting
D)Franchising
E)Joint venture

Question

Quizplus · Accepted Answer

A turnkey project involves a firm setting up a production facility for a foreign client and then handing over the "key" to the client. This can lead to a lack of long-term market presence, the risk of creating a competitor if the client learns the technology, and the potential loss of competitive advantage.

Which Foreign Market Entry Strategy Has the Following Disadvantages: Lack