Overseas Expansion$($Scenario$)$

Whittaker Semiconductors has recently decided to expand its operations overseas. Amanda$$ Quan, Vice President of International$$ Business, assigned a team of investigators to analyze the risks faced by the company in making this move. Of particular interest were the risks that might affect the success of a new production plant to be located in one of three potential countries.

Philip Baxter reported on the risks associated with establishing the plant in Country A$.$ The most significant$$ risk, in his$$ view, was posed by the$$ government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the$$ following?