gain in Japan. Japan Lines sued to determine that the California tax was unconstitutional because it subjected the containers to multiple taxation in Japan and the United States. The United States Supreme Court held the tax was unconstitutional because it violated the Commerce Clause's prohibition on multiple taxation of instrumentalities of foreign commerce.
Generally, regulations governing international business and trade are the responsibility of Congress and the President. As demonstrated by Japan Line, when states involve themselves in these issues, they run the risk of adversely affecting international trade in a way they may not have foreseen. But this also means that regulations governing international commerce are often made by politicians for reasons that may have little to do with the issues that concern businesses. Therefore, compani
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