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In theory, the U.S. states have little authority to interact politically or economically with foreign countries. They are not empowered to make treaties or alliances with other countries nor to regulate commerce with them. However, states frequently act in both these areas. States have entered into agreements with foreign counterparts, as in sister-state relationships, agreements among bordering states and provinces in matters of road construction, police cooperation and border control. States regulate taxes and commerce with foreign nations through their individuals and corporate citizens.
In areas where states traditionally have regulatory authority, their ...