Fierra,Inc.is a German automobile manufacturer that has a 5 percent market share in the United States' automobile market.The company has a unit in North Carolina that imports Fierra automobiles from its parent company in Germany and assembles them.Which of the following measures is in accordance with U.S.A.'s Foreign Commerce Clause?
A) The government of North Carolina imposes an additional 10% tax on Fierra cars.
B) The government of North Carolina bans the sale of Fierra cars outside its borders.
C) The government of North Carolina asks Fierra to shut down its import unit in the state.
D) The federal government imposes an additional 100 percent tax only on Fierra cars being sold in North Carolina.

Question

Quizplus · Accepted Answer

The Foreign Commerce Clause of the U.S. Constitution gives the federal government the power to regulate commerce with foreign nations. Therefore, state governments cannot impose additional taxes or bans on imported goods. However, the federal government can impose taxes on specific imported goods, as long as it does not discriminate against one particular foreign nation or company. Option D is the only choice that is in accordance with the Foreign Commerce Clause, as it is a federal tax that applies only to Fierra cars being sold in North Carolina, and not a ban or additional tax imposed by the state government.