What is the difference between a B-O-T project and a turnkey project? What are the benefits of each to an international business?
What will be an ideal response?
A turnkey project is a contract under which a firm agrees to fully design, construct, and equip a facility and then turn the project over to the purchaser when it is ready for operation. The turnkey contract may be for a fixed price, in which case the firm makes its profit by keeping its costs below the fixed price. A B-O-T project is a variation of the turnkey project in which the firm builds a facility, operates it, and later transfers ownership of the project to some other party. Turnkey projects are extremely lucrative, and B-O-T projects enable firms to profit from operating and owning a facility at least for some time.
You might also like to view...
Developing efficient procedures through which documents will move is an example of activities involved in which of the following stages of the records cycle?
A. Storage B. Creation C. Utilization D. Disposition
Garvey Enterprises, an MNC, uses a global product organizational design. Garvey manufactures and sells boating accessories to customers around the world. Which form does Garvey most likely use?
A) C-form B) H-form C) M-form D) U-form