American foreign trade

Definition

American foreign trade refers to the exchange of goods and services between the United States and other countries. This aspect of the economy became increasingly important in shaping economic relationships, diplomacy, and territorial expansion during a time of significant growth and change in the nation's history.

5 Must Know Facts For Your Next Test

1. In the late 18th and early 19th centuries, American foreign trade was heavily influenced by European conflicts, such as the Napoleonic Wars, which disrupted traditional trading routes.
2. The United States sought to expand its foreign trade markets by negotiating treaties, such as the Treaty of Ghent, which helped to resolve issues related to trade with Britain after the War of 1812.
3. The establishment of trade agreements with various countries facilitated the growth of American exports, including agricultural products like cotton and tobacco.
4. American foreign trade played a critical role in the nation's economic expansion, leading to the growth of shipping industries and ports along the Atlantic coast.
5. The concept of Manifest Destiny in the 19th century drove American expansionism, which included the pursuit of new trade routes and markets in both North America and Asia.

Review Questions

• How did American foreign trade evolve during the early years of the United States and what factors influenced its growth?
  • American foreign trade evolved significantly from its early years, driven by factors such as European conflicts that opened new markets and created challenges for existing trading partners. The young nation sought to establish itself as a player in global trade by securing treaties and navigating international relations. Events like the War of 1812 highlighted the importance of having independent trade policies and pushed America to expand its trading networks beyond Europe.
• Evaluate how American foreign trade impacted domestic industries and economic policies in the early 19th century.
  • American foreign trade had a profound impact on domestic industries by creating demand for products that could be exported, such as cotton from Southern plantations. This increased demand led to the growth of manufacturing sectors, particularly in Northern states. Economic policies were shaped to support this growth through protective tariffs that aimed to foster local industries while promoting international commerce.
• Synthesize the relationship between American foreign trade and territorial expansion in the context of Manifest Destiny during the 19th century.
  • The relationship between American foreign trade and territorial expansion was deeply intertwined with the ideology of Manifest Destiny. As Americans believed it was their fate to expand across North America, they sought new territories not just for land but also for increased access to resources and new markets. This drive for expansion often included strategic considerations for enhancing foreign trade, especially towards Asia where potential markets were seen as vital for American economic interests, shaping both diplomatic relations and military strategies.

Related terms

Mercantilism:

An economic theory that emphasizes the importance of accumulating wealth through trade, particularly in a favorable balance of exports over imports.

Trade Embargo: A government order that restricts commerce with specified countries, which can significantly impact international trade relations.

Barter System: A system of exchange where goods and services are traded directly for other goods and services without using money.