According to the Note on Corporate Strategy, in many developing countries, firms generally tend to have a broader corporate scope than similar firms in developed countries. Which of the following reasons best explains why this occurs?

Reason I: There is usually greater market uncertainty in developing countries than in developed countries.

Reason II: There are typically stronger legal institutions in developed countries than in developing countries.

Group of answer choices

Only Reason II is correct.

Both Reason I and II are correct.

Only Reason I is correct.

Neither Reason I nor II are correct.