As the Chief Financial Officer for a metal refinery, Kaylee disagrees with using a turnkey strategy to enter into the Asian market. She is concerned that the company will not benefit from a long-term interest and could lose financially if the market proves to be successful. What is one way the metal refinery could get around this concern

Question

Business

Morales

25 July, 02:14

As the Chief Financial Officer for a metal refinery, Kaylee disagrees with using a turnkey strategy to enter into the Asian market. She is concerned that the company will not benefit from a long-term interest and could lose financially if the market proves to be successful. What is one way the metal refinery could get around this concern

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Answers (1)

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Edgar Gibson · Answer 1

Take a minority equity interest in the operation.

Explanation:

Multiple Choice

a) Sell competitive advantage to competitors.

b) Agree to import another product from the Asian market.

c) Take a minority equity interest in the operation.

d) Withhold vital process technology from the local firm.

e) Establish a franchise operation.

A turnkey strategy is a market entry position where the project is built from the ground up and turned over to the client ready to go - turn the key and the plant is operational. This is a very good way to enter foreign markets as the client is normally a government. While when one takes a minority equity interest they do not have the votes to control the operations and finances of the the company's business.

Kaylee, the Chief Financial Officer for a metal refinery, Kaylee reasons that the company doesn't have longterm interest in the Asian market advises to take a minority equity interest in the operation in order not to lose financially.