Which arrangement has the home country hiring a host country to hire, train, and manage workers overseas and paying a fee?

• A. Management Contract
• B. Turnkey Operation
• C. Offshoring
• D. Outsourcing

Answer: (A)

The situation described focuses on who handles the ongoing management of the foreign workforce and who pays for those services. When a home country contracts a host-country firm to hire, train, and supervise workers overseas and pays a fee for those management services, this is a management contract. It’s all about outsourcing the managerial and operational responsibilities to a local partner while the home country retains overall control and governance through that paid management service.

Why the other options don’t fit as well: a turnkey operation involves a provider building and equipping a facility and then handing it over ready to operate, which is a one-time transfer rather than ongoing management of the workforce. Offshoring refers to relocating production to another country, often for cost reasons, but doesn’t inherently specify a separate host-country management arrangement with ongoing staffing oversight for a fee. Outsourcing is broad and can involve contracting out processes, but the explicit arrangement described—host-country hiring, training, managing, and the payer’s fee for those services—best matches a management contract.