Turnkey projects are a short-term proposition.This can be a disadvantage for the firm if that 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 potential or actual competitors.
B)competing with the client firm in the world market.
C)taking a minority equity interest in the operation.
D)withholding vital process technology from the client company.

Question

Quizplus · Accepted Answer

The firm that enters into a turnkey deal will have no long-term interest in the foreign country.This can be a disadvantage if that country subsequently proves to be a major market for the output of the process that has been exported.One way around this is to take a minority equity interest in the operation.

Turnkey Projects Are a Short-Term Proposition