Adverse Selection and Moral Hazard Problems Are Likely to Be

Adverse selection and moral hazard problems are likely to be worse in an international setting because:

A) local legal systems may make it difficult for foreign lenders to claim collateral.
B) cultural differences make legal systems incompatible and courts in different countries often interpret issues very differently.
C) in some countries, legal systems are simply corrupt.
D) All of the above.
E) None of the above.