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

question 75

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 should NOT do business in Argentina?

• A) Government bureaucracy in Argentina is limited and is not characterized by red tape.
• B) Qualified suppliers and distributors who are eager to work are readily available in Argentina.
• C) Import restrictions do not apply to the telecommunications industry in Argentina.
• D) In the past, intellectual property rights law have not been enforced in Argentina.

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Definitions:

Imported Apples

Apples brought into a country from another to be sold or consumed, which may be subject to tariffs or quality inspections.

Free Trade

A policy to eliminate discrimination against imports and exports, allowing goods to move freely across borders without tariffs, quotas, or other restrictions.

Quantity Demanded

The specific amount of a good or service that consumers are willing to buy at a given price, holding other factors constant.

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on world economics, politics, and culture.