> Simple as that.

Can I run away? Or is that me "messing" with strange animal and initiating a conflict?

Can I walk on "their teritory" (also known as public street or park)? Or is there some broken rule here?

What if dog is really really horny, and wants small dog I am carrying?

> willing to risk being bitten or worse

I am not willing to risk that. I will not allow that! Simple as that!