Final answer:
The primary risks associated with competing internationally and managing operations in foreign markets are the liability of foreignness and the challenges associated with overdiversification.
Step-by-step explanation:
When it comes to competing internationally and managing operations in foreign markets, two primary risks are commonly identified: the liability of foreignness and overdiversification beyond a firm's ability to manage. The liability of foreignness refers to the inherent disadvantages that foreign companies face when operating in a market outside their home country, such as unfamiliarity with local laws, culture, and business practices. Overdiversification, on the other hand, occurs when a firm expands into too many foreign markets too quickly, leading to stretched resources and potential management inefficiencies. These challenges underscore the complexities of international trade and the importance of strategic corporate management in an ever-evolving, competition-rich global economy.