Vytel Communications (Scenario) Vytel Communications Is a U.S.-Based Telecommunications Company That Is Considering

question 16

Multiple Choice

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 most likely supports the consulting firm's recommendation that Vytel proceed with plans to do business in Argentina?

• A) The political conditions in Argentina are stable.
• B) Government bureaucrats favor domestic firms to foreign firms.
• C) Potential local partners have few government contacts.
• D) The Argentine government lacks transparency.

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Definitions:

Output

The quantity of goods or services produced by a business, industry, or economy.

Long Run

Period in which all inputs or factors of production can be varied, and all costs are variable, allowing companies to adjust to changes in market demand or production capabilities.

Average Costs

A calculation that determines the cost of producing one unit of goods by averaging the total production costs.

Returns to Scale

A concept in economics that describes how the increase in inputs affects the level of output of a production process.