Key Terminology
A type of Turnkey Venture, the three key steps of this project spell the words B-O-T Project
This is an economic model where one country or firm has an advantage in producing a particular good or providing a specific service, relative to another.
Comparative Advantage
Name an advantage of Turnkey Ventures
[Possible Answers Include]
- Comparative Advantage (Expertise, Cost-Cutting)
- Price Certainty
- Less risky than a traditional FDI (distributes risk)
Completed by the United States in 1904, this Turnkey Venture in South America connects the Atlantic Ocean and the Pacific Ocean
Panama Canal
The Burj Khalifa is an example of this kind of Turnkey Venture
EPC Contract
This kind of contract differentiates from a regular Turnkey Venture by transferring the risk of the project over to the contractor.
EPC Contract
These two trade theories relate to Turnkey Ventures
Comparative Advantage and Stages of Economic Growth
Name a disadvantage of Turnkey Ventures
[Possible Answers Include]
- Lack of technical know-how for a specific business operation
- Lack of innovation and creativity
- Changes in interest or wants from buyers as time progresses
- Reliance on another firm
Turnkey Ventures are most commonly found in this specific industry
Construction
This was the first example of a Turnkey Venture found on our timeline
The Dutch East India Company
Marriott is a famous example of this kind of Turnkey Venture. They may not own the property, but they take over operational control.
Management Contract
This economic trade theory displays five stages of modernization, being Traditional Society, Preconditions for Take-Off, Take-Off, Drive to Maturity, and High-Mass Consumption.
Stages of Economic Growth
This Economic Trade Theory is the basis for many of the advantages Turnkey Ventures provides
Comparative Advantage
Governments and firms from these two countries are working together to complete Noida International Airport
India and Sweden
Using the Stages of Economic Growth model, this country is using Turnkey Ventures to propel itself to the Take-Off stage
India