Transcript Foreign Affairs and National Security

Bell Work:
Do you think the U.S. government
should focus more of its attention on
foreign, or domestic affairs?
(EXPLAIN IN DETAIL WHY YOU FEEL THE WAY YOU DO?)
Foreign Affairs and National Security:
17.1
Isolationism to internationalism:
 Foreign affairs have been important since the very beginning
of our nation’s history.
 However, from our independence through the first 150 years,
the American people were mostly concerned with domestic
affairs.
-domestic affairs: events or problems at home.
 Foreign affairs, the nations relationships with other nations,
were of little or no importance.
 During this period, America’s foreign relations were shaped on a
policy of isolationism.
 Isolationism: the purposeful refusal to become involved in the
affairs of the rest of the world.
 Over the past 60 years, we have dramatically changed our
attitude toward foreign affairs.
 Today, our foreign policy is shaped by a policy of
internationalism.
Foreign Policy Defined:
 Every nation’s foreign policy is actually many different
policies, on many different topics.
 Foreign policy: everything that a nation’s government says
and does in world affairs.
 Treaties
 Alliances
 Trade agreements
 Foreign aid (economic and military)
The Presidents Role in Foreign Policy:
 The President is both the nation’s chief diplomat and
commander in chief of the armed forces.
 Constitutionally and by tradition, the President is the person
most responsible for making and the conduct of foreign
policy.
 The President depends on a number of officials and agencies
to help him fill this dual role.
The State Department:
 The State department, headed by the secretary of state, is
agency that is devoted to foreign affairs.
 The President appoints the secretary of state, with consent of
the Senate.
 The President gets most of his advice on both the
formulation and conduct of the nation’s foreign policy.
 The secretary of state ranks first among the members of the
President’s cabinet.
- speaks to the importance of the office
 George Washington appointed Thomas Jefferson as the first
secretary of state.
The Foreign Service:
 Some 6,000 men and women now represent the U.S. abroad
as members of the Foreign Service.
 Under international law, every nation has the right of
legation.
 Right of legation: the right to send and receive diplomatic
representatives.
- Ancient practice, traced back to the Egyptian civilization
6,000 years.
Ambassadors:
 An ambassador is an official representative of the U.S.
 Appointed by the President.
 Usually appoints people who support them.
 Today the U.S. is represented by an ambassador stationed at
the capital of every country the U.S. recognizes.
 American embassies are found in more than 180 countries.
Special Diplomats:
 Special diplomats: those whom the President names to
other top diplomatic posts.
(ex:) U.S. representative to the UN.
 President also gives the personal rank of ambassador to those
diplomats that take on special assignments abroad.
(ex:) Representing the U.S. at an international conference on the
environment.
Passports:
 A passport is a legal document issued by a country that
identifies a person as a citizen.
 Grants that person right of protection while traveling.
 The right to return.
 Few countries will admit a person without a valid passport.
 Visa is a permit to enter another country, and is obtained by
the country a person wishes to enter.
Diplomatic Immunity:
 International law states that every sovereign state is supreme
within its own boundaries.
-means all laws must be followed while in another country.
 This does not apply to ambassadors, who are regularly
granted diplomatic immunity.
- means they are not subject to the laws of the country they
are in.
 When a person is granted diplomatic immunity:
- they cannot be arrested.
- sued
-taxed
-residences cannot be entered or searched without their consent.
-papers and documents are protected.
Bell Work:
 What does the Secretary of State do?
 What is the difference between a passport
and a visa?
Other Foreign and Defense Agencies:
17.2
The Defense Department:
 Congress established the Department of Defense in the
National Security Act of 1947.
-took the place of two cabinet-level agencies:
1. The War Department
2. The Navy Department
 Congress created the Defense Department to unify the
nation’s armed forces.
 Today nearly 1.4 million men and women in uniform, and
nearly 700,000 civilians also work for the Defense
Department.
Secretary of Defense:
 The Department of Defense is headed by the Secretary of
Defense.
-appointed by the President, approved by the Senate.
 Duties include:
1.) President’s chief aide and advisor in defense policy.
2.) The operating head of the Defense
Department.
Chuck Hagel
Chief Military Aides:
 Made up of the following:
-chairman of the Joint Chiefs
-Army chief of staff
-chief of naval operations
-commandant of the Marine Corps.
- air force chief of staff.
 These groups advise the Secretary of Defense and the
President.
Office of the Director of National
Security:
 The DNI was established in 2005.
- due to the failure of the government’s other intelligence
agencies. (9/11)
 The Director of National Security is now the President’s
chief advisor when it comes to matters of national security.
-supervises the 16 agencies that make up the federal
intelligence community.
(ex:) FBI, DEA,CIA, NCTC
- mostly deal in espionage (spying)
Department of Homeland Security:
 Protects the U.S. against terrorism
 The Homeland Security Act of 2002 Gave the department
major operating responsibilities in five specific areas:
1. border/transportation security
2. infrastructure protection
3. emergency preparedness/ response
4. chemical, biological, radiological and nuclear defense.
5. information analysis (intelligence)
Selective Service System:
 Through most of American history, the armed forces have
depended on voluntary enlistments.
 However, from 1940-1973, the draft was a major source of
manpower.
-WWII: more than 10 million drafted
 Selective service was suspended in 1973, but the law is still in
the books.
 The draft law place military obligations on all males in the U.S.
between the ages of 18 ½ and 26.
-males had to register with local selective service boards.
-those local boards then selected those who were to serve.
-registration law still remains in the books today.
Bell Work:
 What is diplomatic immunity?
 What does the Secretary of Defense do?
Benefits of International Trade:
17.3
Introduction:
 In this chapter, we will study the emerging global
economy and the way the U.S. interacts within it.
Why Trade:
 Recall that much like you, countries can not have everything
they want and need due to scarcity.
 So how do countries get the things they need?
- By trading with other nations.
* importing things they need.
* exporting things they produce.
How do nations decide what to
produce? :
 * It is usually considered to be economically wise to
specialize in the production of the goods that a nation
can make the most efficiently.
 - By doing this, you can make more money by
exporting this good to other countries and importing
the materials that you are giving up in the
specialization process.
 Specialization = Focusing on producing a single type
of product because you have an absolute advantage in
the production process over other countries
How do nations decide what to
produce? :
* The decision on whether or not an economy should
make certain goods or import them relies on many
different factors.
- Land, Labor, Capital
- Whether or not the country has an absolute advantage
over other nations producing the same product.
- Whether or not the country has a comparative
advantage over other nations producing the same
product.
Absolute Advantage:
 Absolute Advantage = When a country can produce
certain goods quicker and cheaper than another country.
Example:
- The weather conditions in Brazil allow them produce more
bananas than France, in which the climate is not suitable to
grow bananas.
- Thus: Brazil is said to have absolute advantage.
Comparative Advantage:
 Comparative Advantage = The ability of a country to
produce a product at a lower opportunity cost than another
country.
- Quick Review: Opportunity Cost: What a consumer is
giving up (the next best option) when making a decision or
transaction.
Comparative advantage Microeconomics Scenario:
 You have a sister and your parents are trying to decide who
has to do what individual chore. You can mow the lawn in 2
hours, your sister can do it in 5 hours. You can clean the
house in 3 hours and your sister can do it in 3 and a half.
 Because you are faster in both cutting the lawn and cleaning
the house – Does this mean your sister should do nothing at
all?
 Which chore should you do ? (From a comparative
advantage perspective)
 If you clean the house, it will take you 3 hours. What is the
opportunity cost of this? Cutting the lawn in 2 hours.
 If your sister cuts the lawn, it will take her 5 hours. What is the
opportunity cost of this? Cleaning the house in 3.5 hours.
 When you compare the two above scenarios, you have a
comparative advantage in cutting the lawn because your
opportunity cost (2 hours) is lower than your sisters – 3.5 hours.
 In the end, you should cut the lawn and your sister should clean
the house.
 This is the efficient choice! The goal of any household (or
economy) is to get the most out of the resources that you have
Bell Work:
What is the difference between
absolute and comparative
advantage?
Financing World Trade:
17.4
Introduction:
* When a decision has been made to trade with a foreign nation
(through the weighing of positives and negatives comparative and absolute advantage). Trade cannot usually
occur until currency is converted. This is done using
something called the exchange rate.
 - Exchange Rate = the price of one nation’s currency in
terms of another nation’s currency
 - Currency = Money
Common Names of International
Currency:
Australia and U.S. = Dollar
Brazil = Real
Britain = Pound
Most of Europe = Euro
India = Rupee
Japan = Yen
Mexico = Peso
Russia = Ruble
FixedExchange Rates:
 - 1945-1970 = Fixed Rate of Exchange
- Fixed Rate of Exchange = A system under which a
government sets the value of its’ currency in relation to a
single standard.
 - U.S. Common Standard was usually the amount of gold
held in reserve
 - Widely supported by the I.M.F.
IMF = International Monetary Fund
Flexible Exchange Rates:
 Present day method of currency exchange is known as a
flexible exchange rate.
 - Flexible exchange rate = setting the values of various world
currencies through the forces of supply and demand.
- Examples:
* The world sees that the Economy of the U.S. is declining, and
want fewer U.S. dollars – The value of the dollar
_______________.
* The world sees that the Economy of the U.S. is rising, and
want more U.S. dollars – The value of the dollar
__________________
Restrictions on World Trade:
17.5
Balance of Trade:
 The currency exchange rate can have an important effect on
a nation’s balance of trade.
 Balance of trade: The difference between the value of a
nation’s exports and imports.
 If a nation’s currency depreciates, or becomes “weak”, the
nation will likely export more goods because its products
will become cheaper for other nations to buy.
 Conversely, if a nation’s currency increases in value, or becomes
$
exports
$
exports
“strong” the amount of exports will decline because the products
will become more expensive.
Trade Surplus v. Trade Deficit:
 Trade surplus: When you export more goods than you
import.
 Trade deficit: When you import more than you export.
-Since 1970, the U.S. has continued to have a trade deficit.
Devaluation:
 Devaluation: lowering a currency’s value by government
order.
-China is currently devaluating their currency.
- Why?
Three Ways to Restrict Imports:
1. Tariffs: two types of tariffs can be applied to an import.
 Revenue tariff: used primarily to raise government revenue.
 Protective tariff: used to raise the price of an imported good
in order to protect domestic production.
2. Quotas: restricts the amount of goods that can be brought
into a country.
-U.S. has a quota on imported sugar and dairy products
3. Embargos: a complete restriction on the imports or export of
a particular good
- often used for political reasons.
(ex:)
- U.S. embargo against Syria for its support of terrorism
(2003)
-U.S. embargo against Cuba, has been around for over 40 years.
Arguments for and Against Free Trade:
 Trade restrictions have become the topic of intense public
debate.
 Protectionist: are those that argue for trade restriction, in
order to protect domestic industries.
 Free-trade supporters: are those that believe that exports
and imports should not be restricted.
Arguments Against Free Trade:
Job security- domestic workers will be unemployed, if
foreign competitors can sell their goods at lower prices.
2. National economic security- Some argue that certain
industries are crucial to the economy of the U.S.
3. Infant industries- Trade restrictions will allow new
industries to compete.
1.
Arguments for Free Trade:
Improved products- Foreign competition encourages
U.S. firms to improve their technology and production.
2. Export industries- U.S. citizens employed in the export
industries may become unemployed.
3. Cheaper Goods- Absolute and comparative advantage
allows for cheaper products for consumers.
1.
International Trade Agreements:
 World Trade Organization (WTO): Largest and most
important international trade organization.
-2007 the WTO was in 147 nations.
-Works hard at breaking down trade barriers in agriculture.
* if food was cheaper, poor people would be able to afford
it and overall better off.
 North American Free Trade Agreement (NAFTA): Free
trade agreement between the U.S., Canada, and Mexico (1993,
Clinton)
 Central American Free Trade Agreement (CAFTA):
Covers most countries in Central America plus the Dominican
Republic.
 European Union (EU): Currently consist of 27 European
countries. (eliminated most of the trade restrictions in those
member countries.)
Video:
Bell Work:
What is devaluation, and why would
a country use this tactic?
Bell Work:
Which historic world event finally ended the
United States' commitment to a policy of
isolationism?
a. World War II
b. the Korean War
c. the Vietnam War
d. the Persian Gulf War
Bell Work:
 What is Right of Legation?
Bell Work:
 Do you think the U.S. should return to
a foreign policy of isolationism, or
should we continue with our policy of
internationalism? (explain your answer
in detail for credit)