Establishing trade relations with other nations
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Transcript Establishing trade relations with other nations
Defining National Interest
Security Interests
Economic Interests
Ideological Interests
Security Interests
A nation’s concern about security depends
on its perception of a threat against it.
Ensure physical survival of nation
Army
Maintain relations with Allies
Join military and other alliances
Maintain internal social order
Citizens safe from violence and crime
Economic Interests
– Provide citizens with adequate standard of
living
– Basic necessities of life (food, water, shelter,
health care)
– Ensure economic development and growth
Establishing trade relations
with other nations
• Determined by wants and needs of citizens,
types of products to sell and development of
economies
Ideological Interests
– Beliefs, values, culture, religion, and history
• Supporting a way of life at home and promoting it abroad
• Protecting the cultural and religious heritage of a nation
– Close ties with religion and government
• Promoting a system of government at home and abroad
Developing Foreign Policy
U.S. Foreign Policy Goals
• Protect U.S. and Americans
• Advance Global Interests
• Promote International Understanding
• Support Foreign and Civil Services
Power and the Pursuit of National
Interest
Power is a nation’s ability to influence others.
Theories of power
• 1.Nations will act to prevent any one
country from becoming too powerful
• 2.Weaker countries ally themselves with
powerful ones to gain more influence in the
world and to receive protection from its
stronger ally.
Why are nations powerful?
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1. Strategic location - Panama
2. Valuable resources – Middle East
3. Strong, diversified economies - Japan
4. Strong militaries - Israel
5. People sacrifice anything for nation’s goals
Most powerful nations have many of these
characteristics. But, any powerful nation must
have either economic or military power to be a
major player in the world.
Do any nations have absolute
power?
• Why? Why Not?
All power is relative to that of
other countries and is based on
several factors.
(power is a nation’s ability to
influence other nations)
Power Factors
1. Economic Power
2. Military Power
3. Geography
4. Modern Technology
5. National Resolve
Economic Power
• A strong, diverse economy is key for
success
• Must maintain relations with allies to buy,
sell and trade goods.
Economic strength determines:
• Global power and influence
– Japan after WWII
• Ensures a nation’s survival
– High unemployment/poverty can destabilize countries
and governments (Yugoslavia, Soviet Union)
– Citizens repressed by government can rebel
– Provides jobs and decent standard of living/
People content
Military Power
• Security threats
– Protect against invasion
• Size of force
– Relative to needs and perception of threat
• Nuclear weapons
– Can yield power – use as tool in negotiations with other
countries
• U.S./N.Korea agreement stop nuclear weapons program in
exchange for U.S. financial aid in building nuclear power plant
Geography
• Geopolitics - the
influence of
geography and
demographics
Large nation advantage
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Mineral resources
Fertile soil
Diverse terrain
Variety of climates
Ability to diversify economy
Ability to rally nation behind leaders
Small nations must have a
valuable resource other nations
need and want
Modern Technology
• Many experts feel this is the dominant
factor to compete economically and
militarily
• Crucial to economic and social development
NATIONAL RESOLVE
Common beliefs of a nation and desire to achieve
them
• Appeals to nationalism, ideology, or religion to
mobilize people to work for a nation’s goals.
• Threats to national security can increase resolve
Tools of Foreign Policy
Look...up in the sky...it's a bird...it's a plane...no, it's the USA ! Able
to leap tall buildings with a single bound...more powerful than a
locomotive...faster than a speeding bullet...and who disguised as
NATO, fights a never-ending battle for truth, justice, and the
American Way while policing the entire world.
Propaganda
One-sided or exaggerated information
used by a nation to gain both national and
international support for its policies or to
discredit the policies of an adversary.
Newspapers
Books
Internet
Radio
Television
Used to influence public opinion
North Korean propaganda of a
soldier destroying the US Capitol
U.S. Propaganda
Diplomacy
Formal contacts between national
governments
Business between nations conducted through diplomats
arrange trade and shipping agreements
serve as resource people for visiting citizens
conducted under strict international rules
Diplomacy
1. Ambassadors - highest ranking diplomats. They represent the
opinions and interests of their country to the host government
2. Diplomatic recognition – one nation recognizing the right of
another government to exist
3. Recalling Diplomats – when one nation strongly disapproves of
another nation’s policies, diplomats may be ordered home (extreme
measure)
4. Expelling Diplomats – diplomats and their families cannot be
arrested or tried for a crime in the host nation – diplomatic immunity
Host government will expel diplomats when disagreeing or serious
crime has been committed (spying)
Diplomacy
5. Cultural and Scientific Exchanges –extend goodwill – groups
exchanged for cultural and scientific purposes
6. Negotiations and Treaties – talks held to try to resolve
problems peacefully. Formalize solutions by writing a treaty.
Bilateral Treaty – formal agreement between two nations.
Multilateral treaty – formal agreement between three or more
nations.
7. Summits – Meeting between heads of state. Attempt to foster
cooperation among nations, resolve problems, lay groundwork.
Trade Relations
• Trade agreements between nations to reduce
or eliminate trade restrictions on each
other’s goods promotes stability and growth
in the economies of both nations.
• Restrictions on trade can be used to show
disapproval of the policies of a nation
• Trade relations often reflect the state of
political relations between nations.
Trade Relations
• Establishing Trade Relations – Shows cooperation between nations
after a period of tension. Opens communication while political
differences are worked out.
• Restrictions on Trade – restrict for 2 reasons
1. Protect a domestic industry
2. Discriminate against products exported to
another nation
Trade restrictions take two basic forms
1. Tariffs 2. Quotas
• Trade Agreements – Used to gain access to another country’s market.
Purpose:
reduce or eliminate tariffs
stimulate trade in new goods and services
Trade Relations
• Trade Agreements – Used to gain access to another
country’s market.
Purpose:
reduce or eliminate tariffs
stimulate trade in new goods and services
• GATT – General Agreement on Tariffs and Trade multilateral trade agreement
• (multilateral trade agreement – agreement between
____________________ countries)
Foreign Aid
• Foreign Aid provides economic and military aid to
undeveloped countries to foster economic development,
gain and protect allies, and promote internal stability. Aid
can come in the form of cash, equipment, or technical
advice. Foreign aid falls into two categories:
– Economic
– Military
Foreign Aid
• Economic Aid – usually cash grants or
loans. Can also be food, farming equipment,
or technical assistance
– Developing nations build power plants, farming
methods, develop industries
– World Bank and other international
organizations (multilateral aid)
– Individual countries – bilateral aid
Foreign Aid
• Military Aid – Often cash grants for
developing a stronger defense
- may also include weapons, training
programs, or military advisers.
- used to help friendly governments stay in
power or to aid potential allies in efforts to
overthrow a hostile government.
Alliances
• Multilateral agreements among nations to protect each
other in case of attack
• Offers mutual protection and support of common interests
• More power militarily and politically (very important to
smaller nations)
• NATO – North Atlantic Treaty Organization – most
powerful military alliance today – formed in 1949 –just
added former S.U. countries.
International and Regional
Organizations
• International Organization - Made up of every nation that
wishes to participate
• Regional Organization – Made up of nations in one
particular area of the world
• Role is to 1. provide a forum for addressing problems that
affect all nations and 2. act as players in the international
arena
International and Regional
Organizations
• International Organizations
• United Nations (U.N.) – most prominent
international organization. Primary purpose
is to promote peace. Large nations – discuss
different national interest. Small nations –
equal opportunity to express views.
International and Regional Organizations
• Regional Organizations – members located in a
particular region of the world.
• European Union (EU) includes most western European
nations as well as some eastern European nations. It
provides economic cooperation among its members.
• Organization of American States (OAS)established
to promote the joint interests of North American and South
American nations.
• Organization of Petroleum Exporting Countries (OPEC)
was founded so smaller nations could compete with
superpowers on economic and political issues.
Boycotts and Sanctions
• Hostile actions taken against nations
• The most severe form of action that can be
taken against a nation short of military
actions – can be considered an act of war.
Boycotts and Sanctions
• Boycott – decision to abstain from buying certain
goods to try to force a nation to change its policies
or a refusal to participate in international events or
meetings. (Moscow Olympics 1980)
• Sanction – action taken by one nation to force
another nation to comply with international law or
to change its policies. (Iraq vs. Kuwait 1990,
Haiti 1991-1994)
Military Force
• Gain territory, reclaim lost land, extend
power over another group, spread religion,
settle disputes.
• Military force is used in other ways to
support foreign policy – warning, challenge
to sovereignty.
Military Force
• Show of strength – position troops around
world
Keep an eye on a situation to keep a
threat from occurring or escalating
Military Force
• Terrorism – acts of violence, taking
hostages, or setting off bombs in public
places. Carried out by nongovernmental
groups to gain attention for their political
causes
May receive money, equipment, or
moral support from a government
Military Force
• Limited Military Response –Short term
military actions to force another nation to
back down in a specific dispute
– Warns offending natin that it is risking fullscale war and alerts world community that a
nation is willing to fight for its security and
ideals. (1986 Tripoli, Libya in response to
nation’s alleged role in terrorist attack in West
Germany that killed American soldiers)
Military Force
• War – If all efforts for solving a conflict
fail, nations go to war.
– Cost of war is great
• Individuals
• Society
• Economies
– Foreign Policy tool of last resort