Imperfections in the Market for Intangible Assets Can Also Play

question 41

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 options

---

Definitions:

Cultural Background

The background of a person or group defined by their ethnicity, religion, language, and other factors that contribute to their culture.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that organizes human needs into a hierarchical structure, with basic needs at the bottom and self-actualization at the top.