A company designs and constructs a facility abroad,trains local personnel,and then transfers the facility to local management for a fee.Which of the following entry strategies is being implemented by the company?
A) franchising
B) offshoring
C) turnkey operation
D) contract manufacturing

Question

Quizplus · Accepted Answer

This is a clear example of a turnkey operation, where the company designs and constructs a facility, trains local personnel, and transfers the facility to local management for a fee. The local management takes over the operation of the facility once it is complete. Franchising involves selling the rights to use a company's brand name and business model, while offshoring involves relocating the production or services to a foreign country to take advantage of cost savings. Contract manufacturing involves outsourcing the production of goods to third-party manufacturers.

A Company Designs and Constructs a Facility Abroad,trains Local Personnel,and