This excerpt taken from the MRVL 10-K filed Jul 2, 2007.
The international nature of our business exposes us to financial and regulatory risks that may adversely impact our revenues and profitability.
International operations are subject to a number of risks that may limit our ability to design, develop, test or market certain technologies and products, which could in turn have an adverse effect on our results of operations and financial condition, including:
· international terrorism and anti-American sentiment, particularly in the emerging markets;
· security concerns, including crime, political instability, armed conflict and civil or military unrest;
· local business and cultural factors that differ from our normal standards and practices in the United States;
· regulatory requirements and prohibitions that differ between jurisdictions;
· laws and business practices favoring local companies;
· differing employment practices and labor issues;
· withholding tax obligations on revenues that we may not be able to offset fully against our U.S. tax obligations, including the further risk that foreign tax authorities may increase tax rates, which could result in increased tax withholdings and penalties;
· less effective protection of intellectual property than is afforded to us in the United States or other developed countries; and
· limited infrastructure and disruptions, such as large-scale outages or interruptions of service from utilities or telecommunications providers and natural disasters.
These conditions make it extremely difficult for our customers, our vendors and for us to accurately forecast and plan future business activities. We cannot predict the timing, strength or duration of any economic recovery, worldwide, or in our served markets. If the worldwide economy or our served markets in which we operate were to experience any of the conditions above, our business, financial condition and results of operations could be adversely affected.