Foreign Policy & International Trade

Domestic Policy Relates to events within a country Opposite of foreign policy Issues: Economy Health Taxes Employment Education Crime War/ military

Foreign Policy Goals for American Foreign Policy: National Security Promote world peace Promote world democracy Encourages peace International Trade Creates markets & jobs

Methods used to carry out foreign policy: Creating Treaties & Executive Agreements Senate must approve all treaties by 2/3 vote President bypasses Senate approval by doing executive agreements Appoint Ambassadors 150 ambassadors approved by the Senate Sent only to embassies in countries USA recognizes Foreign Aid Money, food, military assistance, & other supplies given to help other countries Marshall Plan

Methods used to carry out foreign policy continued: Military Force Use military to carry out foreign policy International Trade President makes agreements about what items can be traded & rules of trading Place trade sanctions & embargos

Foreign Policy Can form many unions & alliances Organizations North Atlantic Treaty Organization (NATO) Military alliance between USA, Canada, & Europe nations Purpose: Consult on joint issues, defend (attack on 1, is an attack on all), & stabilize conflicts & countries. Organization of Petroleum Exporting Countries (OPEC) Maintain price levels of crude oil Countries: Iran, Iraq, Kuwait, Algeria, Angola, Ecuador, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, & Venezuela

OPEC Contributors (Daily): -U.S. consumes 20.8 billion barrels of oil daily. -U.S. produces 7.46 million barrels daily.

The Student Forum Write the title of each section on page 1(blue headings). State whether it is foreign or domestic policy. Outline each section (key points). State how each topic may affect you. Describe how.

International Trade International Trade is a major industry in the world today Import or export

Why do we trade? Trade is one way that we solve the problems of scarcity, in the world. Nations trade goods & services they do not have or cannot produce. Comparative Advantage Allows a nation to specialize in one specific item, but it can cause over production which trading helps stabilize. Creates Jobs

Trade Problems Consumers will buy the cheaper product, which can cause: lay-offs Block trade through tariffs, quotas & trade barriers; which in turn cause high prices. Solution: free trade

Free Trade Organizations European Union (EU) No trade barriers on goods, services, & labor between European countries. Created Euros. North American Free Trade Agreement (NAFTA) World Trade Organization (WTO) Organizes negotiations about trade rules Provides help to economically developing countries Settles trade disputes

International Trade & Foreign Policy Formed: Global Interdependence 1 affected, all affected Free Trade Foreign aid Internationalism United Nations (UN)

United Nations (UN) 191 members Purpose: Maintain international peace Develop friendly relations among nations Promote justice & cooperation Seek solutions to global problems Common Events: Fight: hunger, disease, poverty,& ignorance. Provide help to poor countries with money, health, industry, agriculture, education, etc. Make low interest rate loans for developing countries Protect children in natural disasters & wars Help children in developing countries Education, death, illness Security Council POWER OF THE UN Members: U.S., France, UK, China & Russia $ = power / U.S. donates most $$$$$