The National Security Argument Is Used by Those Who Assert

question 29

Multiple Choice

The national security argument is used by those who assert they want to

• A) increase imports as a way of strengthening their country.
• B) increase exports as a way of earning money to strengthen their country.
• C) limit imports that compete with domestic producers important for national defense.
• D) limit exports to control the flow of technology to third world nations.
• E) limit all imports.

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Definitions:

Dilution

Loss in existing shareholders’ value, in terms of either ownership, market value, book value, or EPS.

Book Value

is the net value of a company's assets minus its liabilities, as recorded on the balance sheet, often used in assessing a company's financial health.

Market Value

The ongoing price for buying or selling an asset or service in the market.

Dilution

The reduction in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.