foreign policy & international trade. domestic policy relates to events within a country...
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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 $$$$$
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