Firms that have intangible assets with a public good property tend to invest directly in foreign countries. This is because
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)all of the above

Question

Quizplus · Accepted Answer

Firms invest directly in foreign countries to both utilize their intangible assets on a larger scale and to prevent misappropriation that can occur when using market mechanisms.

Firms That Have Intangible Assets with a Public Good Property