Which of the Following Describes the National Security Argument for Protectionism

question 126

Multiple Choice

Which of the following describes the national security argument for protectionism?

• A)Nearly all industries can make some claim to strategic importance so such trade restrictions can get out of hand.
• B)Increases in economic surplus outweigh the decreases in consumer surplus that result from protectionism.
• C)Some goods should be insulated from foreign competition to ensure an adequate supply of these goods in the event of an international conflict.
• D)Private companies (for example,Coca-Cola)should not be forced to reveal their trade secrets to foreign companies.

---

Definitions:

Financial Reporting

The procedure of making known the financial situation of an organization to its management, those who invest in it, and the government.

External Users

Individuals or entities outside a company who use financial information to make decisions about the company, such as investors, creditors, and regulatory bodies.

Conceptual Framework

A structure of principles and guidelines that supports the creation of accounting standards and helps in the preparation of financial reporting.

Financial Reporting

Crafting statements that unveil a business's financial health to those managing it, its investors, and regulatory bodies.