Chapter 8 vocabulary

sole executive international agreement

A _______ is one negotiated and put into legal effect without congressional approval. The president's authority to enter a _____ is based either on presidential powers inherent in being the chief executive and commander-in-chief or it arises pursuant to existing legislation. _____ are not treaties or substitutes for treaties and are not used to set national policy. Examples are a legally bdining contract with a foreign country to lease property for the site of an American embassy.

multiple taxation

A state's authority to tax a business engaged in foreign commerce is also determined by whether or not the tax imposed results in ______. ______ occurs when the same service or property is subjected to the same or a similar tax by the governmental authorities of more than one nation. Japan Line v. County of Los Angeles

emergency powers

Congress also grants the president ______ for responding to international emergencies

normal trade relations

In the US, unconditional MFN trade has been renamed by Congress as _______. Countries with whom the US has _____ received a favorable, negotiated rate well belo the original 1930 Smoot-Hawley rate.

Supremacy Clause

In the negative implication doctrine, state governments may not enact laws that impose a substantial burden on foreign commerce. Where there is an existing federal law governing some aspect of foreign commerce, a conflicting state statute may be invalid (preempted) under the _______.

Import-Export Clause

The Constitution also prohibits the states from taxing BOTH imports or exports.

reciprocal trade

The president was granted the authority to negotiate tariff reductions on a product-by-product basis with other countries on the basis of ______. The US would reduce a tariff on a foreign product if the foreign country would reciprocate by lowering its tariffs.

inherent powers

The president's ________ are those that are expressly granted to the president in Article II, which states that, "The executive Power shall be vested in a President."

equal dignity rule

Treaties are binding on both the federal and state governments with the same force as an act of Congress. Both statutes and treaties are of equal importance. In the event of a conflict between a treaty and statute, the last in time prevails.

federal preemption

When a law or regulation of the federal government directly conflicts with those of the state (or local) government, the federal law will generally prevail when Congress expresses the intention that the federal law shall prevail or when that intention may be inferred from the legislation or from the circumstances. This is known as _____.

Conditional MFN trade

_____ means that any trading advantage (such as reduced tariff rate) applied to an item imported into a country will also be applied to the same or like items coming from any other country that has MFN status with the importing country, PROVIDING THAT COUNTRY RECIPROCATES AND LOWERS ITS TARIFF RATES IN AN EQUIVALENT AMOUNT IN RETURN.

trade promotion authority

a "fast-track" process for approving trade agreements, today known as the president's _____. The statute gives the president (through the US Trade Representative) limited and temporary authority to negotiate trade agreements pursuant to the objectives set out by Congress.

trade preference

a law that grants favorable trade and tariff treatment to products coming from developing countries, and is intended to aid in their economic development.

presidential proclamation

a statement or declaration of the president usually addressed to the general public announcing a finding or commemorating an event. The first ______ was President Washington's creation of a national Day or Thanksgiving.

water's edge election

allows "multinational" corporate taxpayers the option of excluding the income of related entities that are incorporated in a foreign country or that earn a majority of their income in a foreign country California

unitary business

an affiliated or related group of companies under common control

tariff concession

an agreement to reduce a tariff to a specified level

trade agreement

an international agreement between nations on matters related to trade and tariffs. In addition to reducing tariffs or other barriers to trade in goods or services, ____ can achieve for broader objectives. For example, some _____ manage or control trade in endangered wildlife, forestry products, or antiquities, while others might also address "side-issues," such as the protection of intellectual property, the rights of workers in developing countries, the rights of investors, or cross-border transportation.

executive order

an official, legally binding regulation or written directive issued by the president, usually addressed to government officials, departments, or agencies, and used to set policy and direct government operations. Some examples of ______ are President Roosevelt's orders implementing the New Deal during the Great Depression and his order interning Japanese-Americans during World War II.

unconditional MFN trade

any new lower tariff that applies to an item imported from one MFN trading partner AUTOMATICALLY APPLIES TO THE SAME OR LIKE ITEMS IMPORTED FROM ALL OTHER NATIONS THAT ARE IN MFN STATUS WITH THE IMPORTING COUNTRY, WITHOUT ANY CONCESSION BEING REQUIRED FROM THOSE NATIONS IN RETURN.

congressional-executive agreements

international agreements between the president, representing the US, and a foreign country, negotiated and concluded by the president and voted into law by a simple majority vote of both the Senate and the House of Representatives. _______ serve much the same purpose as treaties, but they are entered into without resort to the treaty process. Their legal nature, however, is different.

nontariff barrier

nay barrier to trade, other than a tariff, that has the effect of prohibiting or discouraging imports. Examples are quotas on imported products, special licenses for importing, and hidden or bureaucratic "red tape" in the customs or import process

free trade agreement or FTA

refers to a trade agreement with broader coverage that establishes a "free trade area" in which special tariff and customs provisions govern the flow of trade between the participating countries. Goods moving between these countries usually have few or no tariffs and few restrictions. These special arrangements provide even "more favorable" tariff and customs treatment for imports and exports than does "most favored" nation status alone. Special treatment of trade in services is often included.

treaty power

refers to the authority of the US to enter treaties pursuant to Article II of the Constitution. U.S. treaties are negotiated by the executive branch with the "advice and consent" of the Senate and approved by a two-thirds vote of the Senate. The House does NOT vote on treaties.

presidential memorandum

usually less formal than an executive order. Often states in its text that it does not create enforceable legal rights. It is often used to give guidance or delegate routine presidential functions to lower government officials.

Commerce Clause

vests the federal government with exclusive control over foreign commerce