Turnkey projects and foreign direct investment are both risky modes for entering foreign markets. Briefly describe the risks associated with each mode
What will be an ideal response?
Turnkey projects are risky because of possible financial risks such as cost overruns. Construction risks, such as delays and problems with suppliers, are also an issue with turnkey projects. FDI involves high financial and managerial investments, high exposure to political risk, and vulnerability to restrictions placed on FDI by host country governments.
Business
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________ involves entering a foreign market by developing foreign-based assembly or manufacturing facilities
A) Indirect exporting B) Direct investment C) Joint venturing D) Contract manufacturing E) Direct exporting
Business
An attributive entity can only exist if it is connected to at least two other entities
Indicate whether the statement is true or false
Business