Question
The National Foreign Trade Council (NFTC), a nonprofit trade and industry group based in Washington, DC, won a court battle against the state of Massachusetts.
The National Foreign Trade Council (NFTC), a nonprofit trade and industry group based in Washington, DC, won a court battle against the state of Massachusetts. In a unanimous decision, the US Supreme Court sided with the NFTC and struck down a Massachusetts law that was designed to deny state contracts to any company doing business in Myanmar. The Court ruled that the Massachusetts law intruded on the federal governments authority and was preempted by federal law regarding Myanmar. In fact, the US Constitution states that foreign policy is exclusively reserved for the federal government. The NFTC said that it shared concern over human rights abuses in Myanmar but believed that a coordinated, multinational effort would be most effective at instilling change in the nation. 6-5. Do you think that companies should be penalized domestically based on where they do business abroad? Explain. 6-6. Do you foresee potential problems when the WTO gets involved in such political matters? 6-7. How might domestic firms react if each state were to punish firms based on its own foreign policy ideals ?
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