Imperfections in the Market for Intangible Assets Can Also Play

Multiple Choice

Imperfections in the market for intangible assets can also play a major role in motivating firms to undertake cross-border acquisitions. According to the internalization theory,

A) cross-border acquisitions may also be motivated by the acquirer's desire to acquire and internalize the target firm's intangible assets.
B) a firm with intangible assets that have a public good property such as technical and managerial know-how may acquire foreign firms as a platform for using its special assets on a larger scale and, at the same time, avoid the misappropriation that may occur while transacting in foreign markets through a market mechanism.
C) the internalization thus may proceed forward to internalize the acquirer's assets, or backward to internalize the target's assets.
D) all of the above