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Vytel Communications​ (Scenario)

Vytel Communications is a​ U.S.-based telecommunications company that is considering doing business in Argentina. Vytel managers hire a consulting firm to investigate the risks and benefits related to doing business in Argentina. The consulting firm identifies a number of challenges that might prohibit Vytel from entering Argentina. In​ addition, the consultants conduct surveys that indicate a demand for​ Vytel's products and services.

Which of the following would be most important for the consulting firm to evaluate when making a recommendation to Vytel about doing business in​ Argentina?

A. Do Argentine firms frequently outsource their key operations​abroad?
B. What benefits have been gained in the past by Vytel using foreign​ distributors?
C. Is​ work-life balance uniformly enjoyed by the Argentine​workforce?
D. Would government regulations significantly impede​ Vytel's ability to make​ profits?

Sagot :

Parrain

Answer: D. Would government regulations significantly impede​ Vytel's ability to make​ profits?

Explanation:

The challenge to doing business in the country is that there are barriers to entry which are most probably government regulations.

The opportunity however is that there is a demand for Vytel's products and services which means that there is a chance to make profits.

The question the consulting firm should be asking therefore is if the profits that could be made could be impacted by the government regulations so significantly that there would be no benefits.

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