1. Foreign Policy & International Trade

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

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

4. 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

5. 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

6. 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

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

8. 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.

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

10. 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

11. 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

12. 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

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

14. 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 $$$$$