Question

I am confused with this question below. I received two different answers for the same question. One answer said that the government must not try to stop companies from doing business with other countries, and another answer said the government can stop a company from doing business in a foreign country or with a foreign company. Which answer is correct? Which answer I can go with? Please help!

Solebike, an exercise equipment company, has entered into a contract with the department of defense to install exercise bikes in the DoD's office gyms. The DoD has a clause in all contracts that disallows any company that does business with the US government from concurrently doing business with or in Iran. Solebike is actively negotiating a deal to install exercise bikes in the largest hotel in Tehran, Iran's capital city. Do you agree that government efforts to thwart terrorist activity should trump a company’s intentions to do business in a foreign country or with a foreign firm? Why or why not?

Answer 1

I believe that you should go with the answer which says that the government can stop a company from doing business with a foreign country or with a foreign company. The reason being is that it’s a part of government policy which all companies based in the USA should adhere by. And, if a government is making such a policy keeping the nation’s interest and safety in mind, I don’t think it’s wrong either in any manner.