Diacon Products manufactures and sells a wide variety of complex electronic products. Diacon Products wants to enter foreign markets and is deciding on a mode of entry. Vice President of Manufacturing, Brooke Monroe, is making a strong push for a turnkey project. Which of the following is an advantage of turnkey projects as a mode of entry into foreign markets that would help Brooke Monroe make her case?
A. It is an ideal way to gain entry into a country where FDI is not limited by government regulations.
B. It is a useful strategy to earn great returns from the know-how of a technologically complex process.
C. It is an ideal way to establish a firm's long-term presence in a foreign country.
D. It helps protect a firm's competitive advantage.
E. The firm that enters into a turnkey project with a foreign enterprise avoids giving rise to potential competitors.
Answer: B. It is a useful strategy to earn great returns from the know-how of a technologically complex process