The International Economic Interests of U.S. States

Abstract

During the 1970s, global interdependence penetrated deeply into the U.S. economy, drawing state governments into novel international trade and investment activities. State promotional programs sought to capture revenue and job creation benefits from export expansion and foreign investment inflows, while other state actions attempted to minimize costly local disruptions associated with import competition andforeign control of resources. As foreign and domestic economic factors intertwined, national jurisdiction in matters of foreign affairs increasingly overlapped traditional state government prerogatives concerning economic development and citizen welfare. State governments began direct lobbying on international issues, leading to both complementary and conflictual national-state positions. As the United States adjusts to an interdependent global economy, a new international dimension will be added to federal relationships. National and state officials must fashion creative new instruments to accommodate diverse domestic political and economic needs while still exerting positive Iladership in international economic forums.