Interstate commerce refers to the purchase, sale or exchange of commodities, transportation of people, money or goods, and navigation of waters between different states.
Think of interstate commerce as a big game of tag where each state is a player. The players (states) can pass the ball (goods, services, etc.) to each other but they have to follow certain rules set by the referee (the federal government).
Commerce Clause: This is a clause in the U.S. Constitution that gives Congress the power to regulate commerce with foreign nations and among states.
Federalism: This is a system where power is divided between national and state governments.
Regulatory Policy: These are policies designed by government to control or change some aspect of the economy through regulations.
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.