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

Question 50

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Vytel Communications
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 which indicate a demand for Vytel's products and services.
-Which of the following questions would be most important for the consulting firm to evaluate when making a recommendation to Vytel about doing business in Argentina?


A) What is the likelihood that one of the Argentina-based firms will relocate operations?
B) Would the lower cost of outsourcing offset any financial setbacks for Vytel?
C) Will government regulations significantly impede Vytel's ability to make profits?
D) What benefits have been gained in the past by Vytel using foreign distributors?

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