U.S. Constitutional Clauses
There are two important clauses in the U.S. Constitution related to international law. First, the Foreign
Commerce Clause enables Congress to “regulate commerce with foreign nations” (Cheeseman, 2016, p. 904).
This clause permits U.S. businesses to actively negotiate and implement taxes or other regulations as they
relate to international commerce. However, businesses cannot unduly burden foreign commerce. For
example, General Motors, which is based in Michigan, cannot suggest that the state impose a 50 percent tax
on foreign-made automobiles sold in the state, while not imposing the same tax on U.S.-made vehicles.
Michigan can, however, impose a 10 percent tax on all automobile sales in the state to offset the costs of
foreign trade and commerce.
The second important clause related to international law is the Treaty Clause, which states that the president
has the power “by and with the advice and consent of the senate” to create treaties with other nations
(Clarkson, Miller, & Cross, 2018, p. 440). This clause restricts treaties to federal authority, meaning that states
do not have the power to enter a treaty with another nation. For example, the United States and Mexico can
sign a treaty to reduce trade barriers between both nations, but the state of Texas cannot sign a treaty with
Mexico to reduce trade barriers between Texas businesses and Mexico. Additionally, any treaties established
with other countries become U.S. law, and any conflicting law is null and void.
Primary Sources of International Law
International customs, treaties, and organizations are the primary sources of international law (Clarkson,
Miller, & Cross, 2018, p. 439).
Figure 13.3
Three distinct components are sources for how international law is understood, defined, and
interpreted around the world. (Modification of art by BNED Credit: CC BY NC SA)
These three components work together to guide how nations understand, define, and interpret international
laws that govern global business affairs.
International Customs
Customs are general practices between nations that guide their business relationships. According to the
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