Anti-Boycott Regulations

AAA

DEFINITION of 'Anti-Boycott Regulations'

A law that prevents customers from withholding their patronage of a business. In the United States, anti-boycott regulations primarily deal with withholding support from Israeli businesses. The Arab League formally requires member countries to boycott trade with Israel and trade with companies that trade with Israel based on an agreement it enacted in 1948. In response, the United States implemented anti-boycott laws in the mid-1970s to prevent U.S. companies from boycotting trade with Israeli companies. The law also prohibits refusing to employ U.S. citizens because of their nationality, race or religion.

INVESTOPEDIA EXPLAINS 'Anti-Boycott Regulations'

The Export Administration Act sets forth the U.S. anti-boycott regulations and the criminal and civil penalties (fines, imprisonment and denial of export privileges) for companies and employees who don't comply with the law. The purpose of the regulations is to prohibit U.S. companies from implementing other countries' foreign policies when those policies disagree with U.S. policy. A related Internal Revenue Service regulation denies tax benefits to companies that do not comply with anti-boycott laws.

RELATED TERMS
  1. Free Trade Area

    A group of countries that invoke little or no price control in ...
  2. Countervailing Duties

    Tariffs levied on imported goods to offset subsidies made to ...
  3. Department of Commerce

    The cabinet department in the U.S. Government that deals with ...
  4. Import

    A good or service brought into one country from another. Along ...
  5. Protectionism

    Government actions and policies that restrict or restrain international ...
  6. Voluntary Export Restraint - VER

    A trade restriction on the quantity of a good that an exporting ...
Related Articles
  1. Sanctions Between Countries Pack a Bigger ...
    Economics

    Sanctions Between Countries Pack a Bigger ...

  2. What Is International Trade?
    Personal Finance

    What Is International Trade?

  3. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  4. In Praise Of Trade Deficits
    Economics

    In Praise Of Trade Deficits

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center