Trade Between the United States and India

question 269

Multiple Choice

Trade between the United States and India

• A) benefits both the United States and India.
• B) is a losing proposition for the United States because India has cheaper labor.
• C) is a losing proposition for India because capital is much more abundant in the U.S. than in India.
• D) is a losing proposition for India because U.S. workers are more productive.

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Definitions:

Common Stock

A type of equity security representing ownership in a corporation; holders may receive dividends and have voting rights at shareholders' meetings.

$1 Par Value

The nominal or face value assigned to a share of stock, with no necessary relation to the market value, set at $1 per share.

Earnings Per Share

A financial metric that divides net income by the number of outstanding shares, indicating the profit available to each share of stock.

Treasury Stock

Stocks initially released and later repurchased by the company that issued them, leading to a reduction in the available shares on the public market.