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 $$$$$