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.

Question

Quizplus · Accepted Answer

Stable political conditions in a country are crucial for foreign businesses as they imply a predictable and secure environment for investment and operations. This stability can encourage companies like Vytel Communications to proceed with plans to do business in the country, despite other challenges.

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