Asked by Katie McFarland on Jun 26, 2024

verifed

Verified

Vermilion Inc. is an American business consulting company. The company is planning to open its office in Argentina. Jensen, a manager at Vermilion, suggests that the company should conduct a PEST analysis before taking this step. Which of the following is a political factor that Vermilion should take into consideration in its PEST analysis?

A) Tax rates in Argentina
B) Wage rates in Argentina
C) Poverty rates in Argentina
D) Specific industry conditions in Argentina

Political Factor

Refers to governmental influences that can affect the operation and profitability of businesses, including laws, policies, and political stability.

PEST Analysis

A strategic business tool used to identify, analyze, and monitor the macro-environmental factors that may have a profound impact on an organization's performance.

Tax Rates

The percentages at which individuals or entities are taxed on their income, property, or sales.

  • Understand the role of PEST analysis in improving comprehension of various markets.
verifed

Verified Answer

SV
Shivam VaishJul 01, 2024
Final Answer :
A
Explanation :
Tax rates in Argentina are a political factor because they are determined by the government and can significantly affect business operations and profitability.