How Does Federalism Work?
This case can be used to open a discussion of federalism in general, and possibly the three manifestations of federalism in the NAFTA triad. The instructor can assign this case to complement a textbook or more theoretical piece on federalism, and then ask students to point out how the transnationalization of subnational governmental activity squares with what they have read. Courses on American, Canadian, and Mexican government can go into greater depth studying the particular federalist system at issue, and asking how it may or may not differ from other federalist and non-federalist systems. The case also presents empirical data which can then be analyzed according to the expectations students have about the way federalism empowers and yet limits subnational governments. The instructor might open discussion by asking, “Are all of these subnational contacts and activities created equal? Which are most likely to result in policy changes that will constrain the action of central governme