COLUMBIA, S.C. - The latest skirmish over race relations in South Carolina has business leaders wondering whether the actions will further tarnish the state's image or affect its economic development.

The Rev. Jesse Jackson, a Greenville native and civil rights leader, vowed mass demonstrations and a business boycott of Greenville County after the County Council rejected two proposals Tuesday that would have established an official Martin Luther King Jr. holiday. Instead, the council voted to allow employees to choose King's birthday as one of three floating holidays.

Jackson and other supporters said only a dedicated holiday would be acceptable.

The Greenville County Chamber of Commerce is concerned about the boycott's impact on business and recruiting, spokeswoman Julie Horton said. There are at least 256 international companies in the county.

"We want this issue put to bed quickly," she said. "Anything that can negatively impact the image of the community of course impacts our ability to build a strong business community."

But economist Doug Woodward said race relations aren't as important to international companies, which are looking at labor, cost, infrastructure and tax incentives.

"They stick to the fundamentals," the University of South Carolina professor said.

Greenville County attracts businesses because it's a strong manufacturing area, but an economic boycott by the National Association for the Advancement of Colored People has driven out some of those, Woodward said.

The NAACP has called for an economic boycott in South Carolina until the Confederate flag in front of the Statehouse is completely removed from Statehouse grounds.

"There are some companies that are sensitive to their image and don't want to be associated with something that may tarnish their image," he said.

Political scientist Dave Woodard said the county's economy will not suffer from the boycott.

"It's the symbolic political aspect that's going to be so dreadful," he said. "It's been shown most boycotts don't really work - not for anybody. They don't work against Saddam Hussein. They don't work against Disney World."

The real damage will be how the public views the county, said Woodard, who has been a professor at Clemson University for 20 years.

"What's going to suffer is the public image of Greenville and the Upstate as a result of this and that will be far more traumatic than any real economic sanction," he said.

Woodward and Woodard agreed big events - like tournament games, conferences and concerts - may not take place in Greenville County as a result of the boycott. And businesses in the Upstate may be affected by that.

"Difficult issues are best addressed through positive discussions with community leaders and the political process rather than economic sanctions," said Michael Fanning, a spokesman for Michelin North America. The Greenville-based company employs about 6,700 people.

Horton said the chamber will help to resolve the King holiday debate and continue to show businesses they want to invest in Greenville County.

"It's beautiful, it's vibrant, it's thriving. We will sell what our good points are in this area."