Question 1
Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.
◦ low inward FDI
◦ high trade barriers
◦ low energy consumption
◦ privatization of state-owned industries
Question 2
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?
◦ Is work-life balance uniformly enjoyed by the Argentine workforce?
◦ Do Argentine firms frequently outsource their key operations abroad?
◦ Would government regulations significantly impede Vytel's ability to make profits?
◦ What benefits have been gained in the past by Vytel using foreign distributors?
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