Since the end of the Cold War, international relations has radically changed. The collapse of the Soviet Union took with it the East-West conflict that dominated world affairs for more than four decades. In its place, the North-South division has emerged as an important framework for reconceptualizing international relations. How the United States responds to the problems and challenges of the countries of the South will be a central question of U.S. foreign policy in the 21st century. This curriculum unit introduces students to the important issues on the U.S. policy agenda for the developing world. At the core of the unit is a framework of three distinct options for U.S. foreign aid policy. Within these options, students will evaluate the kinds of foreign aid, trade benefits, and other assistance the United States invests in other countries, including the prospects of exporting values such as democracy, free enterprise, and human rights. The student text summarizes critical issues of U.S. aid policy and examines four case studies that highlight some dilemmas and controversies of providing aid. The teacher resource book contains a day-by-day lesson plan (5- or 3-day) and student activities. (BT)