Abstract: | ![]() Recent state and local government sanctions on business withBurma and certain Swiss banks renews a debate over foreign policypowers in federal systems that operate in an integrated globaleconomy. International business promotion has become an acceptedfunction of state and local governments. More controversialis the imposition of foreign policy sanctions, where economicinvolvement becomes a lever to pursue political goals ratherthan an objective in itself. When compared with past cases,including South Africa and the Arab boycott, recent state andlocal initiatives demonstrate both continuity and fresh departuresin federalism's evolving adjustment to the global economy. Thesedevelopments can be used to examine theoretical concepts suchas constituent and multilayered diplomacy. They also argue forimproved practical cooperation among the multiple and diverseactors engaged in foreign policy issues. |