Question

Which legislation makes the theft of trade secrets by foreign entities a federal crime in the United States?

A. The Foreign Corrupt Practices Act
B. The World Trade Protectionism Act
C. The Economic Espionage Act
D. The Tariff Initiation Act

Answer 1

The Economic Espionage Act makes the theft of trade secrets by foreign entities a federal crime in the United States.

Step-by-step explanation:

The legislation that makes the theft of trade secrets by foreign entities a federal crime in the United States is the Economic Espionage Act (EEA).

The EEA was enacted in 1996 and is aimed at protecting both private businesses and national security by criminalizing the theft, misappropriation, or sharing of trade secrets with foreign entities. It applies to individuals or organizations, regardless of their nationality, who engage in these activities within the U.S. or for the benefit of a foreign entity.

An example of a trade secret could be a unique manufacturing process or a confidential formula that gives a business a competitive advantage. If a foreign entity steals or attempts to steal such information, they can be prosecuted under the Economic Espionage Act.