According to the Internalization Theory of FDI

question 78

Multiple Choice

According to the internalization theory of FDI

• A)firms that have intangible assets with a public good property tend to invest directly in foreign countries.
• B)property rights in intangible assets are difficult to establish and protect, especially in foreign countries where legal recourse may not be readily available.
• C)both b and a
• D)none of the above

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Definitions:

Price

Price is the amount of money expected, required, or given in payment for something, often determined by the forces of supply and demand in the market.

Apples

A type of fruit that is typically round, with red, green, or yellow skin, and sweet to tangy flesh.

Bananas

An edible, lengthy fruit generated by several species of substantial, flowering herb plants in the Musa genus.

Utility Function

A representation of a consumer's preference structure ranking different bundles of goods by their level of satisfaction or utility.