Intangible Assets Are Often Hard to Package and Sell to Foreigners

question 18

Multiple Choice

Intangible assets are often hard to package and sell to foreigners

• A)because they usually default on the contracts that they sign.
• B)As a result, there is more FDI than there might otherwise be.
• C)Because property rights in intangible assets are difficult to establish and protect, especially in foreign countries where legal recourse may not be readily available.
• D)both b and c

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Definitions:

Cycle of Debt

A repetitive sequence where a borrower incurs new debt to pay off existing debts, often leading to worsening financial conditions.

Prevented Industrialization

The hindrance or delay of the industrial development process in a country or region, often due to external or internal factors.

Colonization

The act of establishing control over a foreign land and its people by a country or group, often leading to exploitation and cultural assimilation.

Abundant Natural Resources

The availability of a large quantity of natural materials that can be utilized for economic gain, such as minerals, forests, and water.