It is racist to assume that someone’s place of birth determines their allegiances.
edit: clarification
For example, in your example what happens to those born in say, Puerto Rico? Are they barred from running for president because they weren't born in the US?
Switzerland is a small village, so if you break the law, everybody will know it. So locals tend to respect the law (social pressure).
Today a company would be bbqed in the news paper for such a heavy policy.