TripAdvisor 2014 Annual Report Download - page 30

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20
resources. Failure to adapt practices and models effectively to each country into which we expand could slow our international
growth.
Examples of other risks faced by us as a result of our international operations include, but are not limited to, the following:
x Political instability;
x Threatened or actual acts of terrorism;
x Ability to comply with additional U.S. laws applicable to U.S. companies operating internationally as well as local laws
and regulations, including the Foreign Corrupt Practices Act and U.K. Bribery Act, data privacy requirements, labor laws
and anti-competition regulations;
x Diminished ability to legally enforce contractual rights;
x Increased risk and limits on enforceability of intellectual property rights;
x Possible preferences by local populations for local providers;
x Restrictions on, or adverse consequences related to, the withdrawal of non-U.S. investment and earnings;
x Restrictions on repatriation of cash as well as restrictions on investments in operations in certain countries;
x Financial risk arising from transactions in multiple currencies as well as currency exchange restrictions;
x Slower adoption of the Internet as an advertising, broadcast and commerce medium in certain of those markets as
compared to the United States;
x Difficulties in managing staff and operations due to distance, time zones, language and cultural differences; and
x Uncertainty regarding liability for services, content and intellectual property rights, including uncertainty as a result of
local laws and lack of precedent.
We have businesses operating in China, which create particular risks and uncertainties relating to the laws in China. The laws
and regulations of China restrict foreign investment in areas including air-ticketing and travel agency services, Internet content
provision, mobile communication and related businesses. Although we have established effective control of our Chinese businesses
through a series of agreements, future developments in the interpretation or enforcement of Chinese laws and regulations or a dispute
relating to these agreements could restrict our ability to operate or restructure these businesses or to engage in strategic transactions.
The success of these businesses, and of any future investments in China, is subject to risks and uncertainties regarding the application,
development and interpretation of China’s laws and regulations.
The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future,
could harm our business.
Our future success depends upon the continued contributions of our senior corporate management and other key employees. In
particular, the contributions of Stephen Kaufer, our President and Chief Executive Officer, are critical to our overall management. We
cannot ensure that we will be able to retain the services of these individuals, and the loss of one or more of our key personnel could
seriously harm our business. We do not maintain any key person life insurance policies.
In addition, competition remains intense for well-qualified employees in certain aspects of our business, including software
engineers, developers, product management and development personnel, and other technology professionals. Our continued ability to
compete effectively depends on our ability to attract new employees and to retain and motivate existing employees. If we do not
succeed in attracting well-qualified employees or retaining or motivating existing employees, our business would be adversely
affected.
A failure to comply with current laws, rules and regulations or changes to such laws, rules and regulations and other legal
uncertainties may adversely affect our business or financial performance.
Our business and financial performance could be adversely affected by unfavorable changes in or interpretations of existing
laws, rules and regulations or the promulgation of new laws, rules and regulations applicable to us and our business, including those
relating to the Internet and online commerce, Internet advertising, consumer protection and privacy. Unfavorable changes could
decrease demand for products and services, limit marketing methods and capabilities, increase costs and/or subject us to additional
liabilities.