Why Choose A Turnkey Arrangement?
Turnkey projects are attractive because
they are a way of earning economic returns from the know-how required to assemble and run a technologically complex process
they can be less risky than conventional FDI
Turnkey projects are unattractive because
the firm has no long-term interest in the foreign country
the firm may create a competitor
if the firm's process technology is a source of competitive advantage, then selling this technology through a turnkey project is also selling competitive advantage to potential and/or actual competitors