Firms that have intangible assets with a public good property tend to invest directly in foreign countries.This is
A)in order to use these assets on a larger scale.
B)to avoid the misappropriation that may occur while transacting in foreign countries through the market mechanism.
C)in order to use these assets on a larger scale,and to avoid the misappropriation that may occur while transacting in foreign countries through the market mechanism.
D)none of the options

Question

Quizplus · Accepted Answer

Firms with intangible assets that have public good property, such as technology or patents, tend to invest directly in foreign countries in order to use these assets on a larger scale. Additionally, by investing directly, they can avoid the misappropriation that may occur while transacting in foreign countries through the market mechanism, thus protecting their intangible assets.

Firms That Have Intangible Assets with a Public Good Property