The United States of America remains the strongest economy in the world and a leader in the global business arena. With a track record of being a strong partner in business and the industry, the nation has a lot to look forward to – especially the market opportunities. However, being and staying on the top did not happen overnight. A lot of factors have contributed to America’s economic success – including its foreign affairs.
Foreign affairs or foreign policies are important components of every country’s economic success. Consisting of strategies that are chosen to safeguard national interests and achieve goals within each nation’s international relations milieu, it impacts the economies.
And while foreign affairs have been one of the key elements for America’s triumph in the global market, how does it really affect the country’s businesses and economy?
Creates global economic presence.
The reason why most countries see America as market-opportunities country, other than because it has consistently proven to be a strong business partner, is because of its well-maintained diplomatic relations.
State-to-state relations among nations is an essential framework for better foreign relations to happen. And perhaps, one of the most important advantages of it is creating the “American brand” or widening America’s global economic presence.
Beyond just a memorable name, “branding” increases a country’s value – acquiring more trade deals and investments easier. In other words, a brand is a promise that creates not only economic ties but emotional ties as well – and this is done through keeping good foreign relations.
Especially these days that everything is going digital, creating a worldwide presence can provide more opportunities for businesses, which in turn, will help the U.S. economy grow.
An opportunity for trade and investment.
Openness to international relations is America’s key underpinning factor for such great economic outcomes – and foreign affairs have made it possible providing a raft of benefits to its citizens.
If done right, trade promotes economic growth and raises household incomes, creates and supports jobs, makes products cheaper and gives a variety of choices for the citizens and businesses, encourages innovation which leads to productivity, boosts tourism, and strengthens education institutions.
The United States is party to many of the world’s free-trade agreements (FTA). Since the late President Theodore Roosevelt, the country becomes a major player in the international trade – including the General Agreement on Tariffs and trade (now known as the World Trade Organization), Trans-Pacific Partnership (which the U.S. recently withdrew from), and the North American Free Trade Agreement (NAFTA).
Deserving countries have been afforded partnership with these trades allowing for the free market economy to flourish.
In addition, foreign policies have allowed the United States to hold control of the world’s reserve currency and enjoy lower interest rates when borrowing – allowing the same status for its citizens and businesses.
Enhances national security.
The success of businesses and the economy, in general, is not only a matter of economic security but national security as well.
Foreign relations with other nations allow America to have an idea about comparative politics and formulate strategies to safeguard the nation, its citizens, and the national interests. Also, these open opportunities for the country to form strategic alliances – one of the most important tools to protect the national security.
Moreover, enhanced foreign relations, can calm the security fears despite emerging issues between countries and encourage consumers to spend more and invite investors to engage in businesses.
America might have an awesome economy (which has been steadily increasing since the 1960’s despite major recessions took some bite from it) most particularly because of factors including foreign affairs.
However, it is to be noted that dealing with foreign policies and international relationships is still a make or break situation. If done right, the country can benefit; but if not, it will suffer – particularly the economy. And it is all up to the current administration.
The future of American economy is now in the hands of President Donald J. Trump. Over the past months, he has implemented and revised new policies that according to him, will “make America great again” – such as repealing and replacing the Obamacare and cutting down on taxes. But most experts are worried about his plans, specifically those that pertain to the U.S. foreign relations.
Shortly after his inauguration, Trump has withdrawn America from the Trans-Pacific Partnership (TPP), renegotiated the North American Free Trade Agreement (NAFTA), and hinted on leaving the United States-Korea Free Trade Agreement (KORUS FTA) – plans which are according to economists can endanger not only America’s relations to foreign countries but its stand in the global market as well.
Furthermore, according to Trump Today, it is not only the economy that’s endangered with Trump as the President – but the democracy, as well, will fall.
But despite a lot of criticisms, at the end of the day, everyone should do their part and hope for a better America.