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

Question

Quizplus · Accepted Answer

Turnkey projects can lead to a lack of long-term market presence because the firm transfers control to the purchaser once the project is complete. There's also the risk of inadvertently creating a competitor if the purchaser gains the knowledge and skills to enter the same market. Additionally, by providing a turnkey solution, a firm might be selling its competitive advantage, especially if the project involves proprietary technology or processes.

Which Foreign Market Entry Strategy Has the Following Disadvantages: Lack