Imperfections in the Market for Intangible Assets Can Also Play

question 47

Multiple Choice

Imperfections in the market for intangible assets can also play a major role in motivating firms to undertake cross-border acquisitions. According to the internalization theory,

• A)cross-border acquisitions may also be motivated by the acquirer's desire to acquire and internalize the target firm's intangible assets.
• B)a firm with intangible assets that have a public good property such as technical and managerial know-how may acquire foreign firms as a platform for using its special assets on a larger scale and, at the same time, avoid the misappropriation that may occur while transacting in foreign markets through a market mechanism.
• C)the internalization thus may proceed forward to internalize the acquirer's assets, or backward to internalize the target's assets.
• D)all of the above

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Definitions:

White Clay

A natural clay with a soft white color, often used in pottery, ceramics, and as a natural skincare ingredient for its purifying qualities.

Female Circumcision

A cultural or religious practice involving the partial or total removal of the external female genitalia, often controversial and considered a human rights issue.

Mende Elders

Refers to respected senior members of the Mende people, an ethnic group from West Africa, known for their wisdom, guidance, and leadership within the community.

Clitoris

A small, sensitive, erectile part of the female genitals, important for sexual arousal and pleasure.