●NAFTA and GATT are ways to lower tariffs and increase trade. Congress approved the Central American - Dominican Republic Free trade agreement in 2005. ●Balance of Trade: Ratio of what is paid for imports to what is earned for exports. ■Energy ●America depends on imported oil, about 60 percent, but not as much as other countries like Japan. ●Much of the recoverable oil is in the Middle East which is often the site of military and economic conflicts. ●Organization of Petroleum Exporting Countries (OPEC): controls the price of oil and amount its members produce and sell to other nations. ■Foreign Aid ●Foreign Aid is used to stabilize nations friendly to the United States. ●A substantial percentage of foreign aid is military. ●Foreign aid has never been very popular with Americans and is typically cut by Congress. ●Understanding National Security Policymaking ○National Security Policy making and Democracy ■Americans are more interested in domestic than foreign policy. ■The opinions of the people are rarely ignored.
■Separation of powers are important. ■Pluralism is pervasive in foreign policymaking. ○National Security Policy and the Scope of Government. ■Scope of government is large. ●Summary ○The United States has maintained a sizeable defense capability, from the Cold War to the War on Terrorism. ○Nuclear proliferation, terrorism, and international economy dictate U.S. foreign policy and international involvement.