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Which of the following statements regarding intellectual property protection is correct?
Correct Answer: B
Intellectual property (IP) protection is critical when sourcing abroad due to the following considerations: * Legal Framework: The presence of robust legal constraints in supplier countries ensures that IP rights are protected and enforced, reducing the risk of infringement. * Compliance: Suppliers in countries with strong IP laws are more likely to comply with IP protection requirements, safeguarding proprietary technologies and innovations. * Risk Mitigation: Without adequate legal protection, there is a higher risk of IP theft or unauthorized use, which can lead to competitive disadvantages and financial losses. * Trust and Reliability: Engaging with suppliers in countries with established IP protection laws fosters trust and reliable business relationships. References: * Maskus, K. E. (2000). Intellectual Property Rights in the Global Economy. Institute for International Economics. * WIPO. (2019). World Intellectual Property Report. World Intellectual Property Organization.