Your company would like to capitalize on the valuable know-how it possesses in petroleum refining technology.However,the governments of many oil-rich countries have set out to build their own petroleum refining industries and have consequently restricted FDI in their oil and refining sectors.These countries lack petroleum-refining technology,though.Which of the following strategies would enable your company to export its process technology to these oil-rich countries?
A)Joint venture strategy
B)Greenfield investments
C)Mergers and acquisitions
D)Turnkey strategy

Question

Quizplus · Accepted Answer

The know-how required to assemble and run a technologically complex process,such as refining petroleum or steel,is a valuable asset.Turnkey projects are a way of earning great economic returns from that asset.The strategy is particularly useful where FDI is limited by host-government regulations.

Your Company Would Like to Capitalize on the Valuable Know-How