Question

The overall attractiveness of a foreign market depends on the risks and rewards of conducting business in the country of interest. Inadequate protection of intellectual property (IP) in a number of developing countries has caused some U.S. companies to avoid certain foreign markets because of the ____________ risk

Answer 1

Answer:

Legal

Explanation:

Legal risk is a risk that financial or reputation loss may arise from lack of awareness or misinterpretation of the laws and regulations that apply to a business. Different countries are governed by different laws and regulations. Therefore, there will be a legal risk in operating a business in different foreign countries.