What is Foreign Policy?
Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “Foreign Policy”
Foreign policy are plans of action adopted by one nation in regards to its diplomatic
dealings with other countries. Foreign policies are established as a systematic way to deal
with issues that may arise with other countries. The United States has a different foreign
policy for almost every country, and the policies can vary based on trade agreements in addition
to many other conditions. Some countries foreign policy has been to
exert a large amount of military force against countries that have different standards.
U.S. foreign policy has traditionally been relatively consistent between Democratic and
Republican administrations. Key allies have always been other Western powers like the
UK, France. Allies in the middle east were—and continue to remain—countries like Israel,
Saudi Arabia and Bahrain. Nevertheless, some differences can be seen
based on the Obama administration’s handling of relations with certain countries. For example,
Israel and the U.S. have always been strong allies. But relations between Obama and Israeli
Prime Minister Benjamin Netanyahu have been tense. A major contributor to this tension
has been the Obama administration’s Iran policy. The U.S. tightened sanctions on Iran in Obama’s
first term, but negotiated a deal in the second term that allowed international inspections
of Iranian nuclear facilities. The U.S. and Iran also found common ground against the
threat from ISIS. This rapprochement has irked Iran’s traditional rival Israel, even though
for all practical purposes Israel and the U.S. remain staunch allies. Republicans in
Congress opposed the Iran deal and the easing of sanctions against Iran. They also invited
Netanyahu to deliver a speech against the deal.
Another country where the Democratic Obama administration reversed decades of U.S. policy
is Cuba. Republican Rand Paul supported the unfreezing of relations with Cuba but his
opinion is not shared by a majority of Republicans. Republicans like presidential contenders Marco
Rubio and Ted Cruz have publicly opposed the normalization of relations with Cuba.