Tom,an investor from the Republic of Senborgia,acquires a large American company in Delaware.He closes down the company's branches in the state and moves the business elsewhere.This results in a heavy layoff of employees who are Delaware citizens.Delaware also suffers a decrease in tax revenues.Which of the following allows the president of the United States to suspend Tom's acquisition?

Question

Quizplus · Accepted Answer

The Exon-Florio Foreign Investment Provision is a U.S. national security law that allows the President of the United States to suspend or prohibit foreign acquisitions of U.S. companies if it is determined that such acquisitions would pose a threat to national security. In this case, the layoff of Delaware citizens and decrease in tax revenues may be seen as a threat to the economic security of the state, and therefore the President could use this provision to suspend the acquisition by Tom. The Williams Act, Securities Exchange Act of 1934, and Investment Company Act of 1940 are all securities laws that regulate different aspects of securities transactions and do not apply to foreign acquisitions of U.S. companies.

Tom,an Investor from the Republic of Senborgia,acquires a Large American