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Diplomacy

Diplomacy. Process of conducting relations between countries – diplomacy – president is chief diplomat Used to prevent war, negotiate, solve problems, establish communication Personal diplomacy – summit – meeting between countries to discuss issues/concerns. Alliances.

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Diplomacy

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  1. Diplomacy • Process of conducting relations between countries – diplomacy – president is chief diplomat • Used to prevent war, negotiate, solve problems, establish communication • Personal diplomacy – summit – meeting between countries to discuss issues/concerns

  2. Alliances • Promote peace and stability • OAS and ANZUS examples of defense agreements • NATO – North Atlantic Treaty Organization • 1949 – to establish a united front against aggression by the Soviet Union and communist allies • Changed focus since S.U. has dissolved & other communist countries were overturned

  3. Forms of Foreign Aid • First gave aid during and after WWII – 1947 Marshall Plan – to help rebuild European countries • By 1952 most countries had recovered

  4. Trade • Foreign trade is a central focus of U.S. foreign policy • Pacific Rim – countries along the Pacific Ocean – have the ability to produce high – quality, low-priced goods

  5. Trade • Pacific Rim countries has had a significant effect on U.S. balance of trade • Difference in the value between a country’s exports and imports over a period of time • U.S. has suffered trade deficits – spends more $ on buying foreign goods (imports) than it earn from selling American made goods (exports) • Trade agreements help address imbalance

  6. Economic Alliances • NAFTA – North Atlantic Free Trade Agreement • Allows free trade among the U.S., Canada, and Mexico • By eliminating trade barriers, members have opened new markets, created jobs, and encouraged growth in member economies • CAFTA – Central American Free Trade Agreement • Increase trade between the U.S. and the Central American countries • APEC – Asia-Pacific Economic Cooperation • U.S. and other Pacific Rim countries – used to promote cooperation • Hoping to lower restrictions on U.S. exports and expand trade especially in Japan

  7. Economic Cooperation • WTO - World Trade Organization • UN agency to supervise international trade and set rules • IMF – International Monetary Fund • UN agency lends $ to countries in need • May help countries change from communism to free-market economies • Opens U.S. to foreign markets leading to increased growth in the economy = improves country’s position in the global economy

  8. Problems w/free trade • American jobs will be lost b/c U.S. corporations will relocate their factories & manufacturing operations to other countries = labor costs lower and raw materials cheaper • Tariffs needed to protect American industries and jobs • Raising tariffs will encourage purchase of Am. goods

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