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Part 1 – Analyzing Primary Sources: (2 points each / 10 total points) Read the following passage and answer the questions that follow. The passage is an excerpt from President Bill Clinton’s State of the Union address in January 1998.

. . . As we enter the twenty-first century, the global economy requires us to seek opportunity not just at home, but in all markets of the world. We must shape this global economy, not shrink from it. In the last five years, we have led the way in opening new markets, with 240 trade agreements that remove foreign barriers to products bearing the proud stamp “Made in the U.S.A.” Today, record high exports account for fully one-third of our economic growth. I want to keep them
growing, because that’s the way to keep America growing and to advance a safer, more stable world. . . .
I know there is opposition to more comprehensive trade agreements. I have listened carefully and I believe that the opposition is rooted in two fears: first, that our trading partners will have lower environmental and labor standards, which will give them an unfair advantage in our market and do their own people no favors, even if there’s more business; and, second, that if we have more trade, more of our workers will lose their jobs and have to start over. I think we should seek to advance worker and environmental standards around the world. I have made it abundantly clear that it should be a part of our trade agenda. But we cannot influence other countries’ decisions if we send them a message that we’re backing away from trade with them.

1. According to President Clinton, what accounted for one-third of U.S. economic growth?
2. What opposition to comprehensive trade agreements does President Clinton acknowledge?
3. What did President Clinton make “abundantly clear” should be a part of the trade agenda?
4. Why does President Clinton want to keep trade agreements going?
5. In the following quotation, what “decisions” is President Clinton referring to?
“But we cannot influence other countries’ decisions if we send them a message that we’re backing away from trade with them.”

Part Two – Interpreting Graphs: (2 points each / 6 points total) Use the graph below to answer the following questions:

oWhat does the graph show?
oWhat trend (pattern) do you see?
oHow can you explain this trend?

Part 3 – Writing: (15 points total) Does protectionism, particularly tariffs and quotas, help or hinder international trade? Protectionism policies are put in place to protect a nation’s domestic economy. Provide examples to help support your answer. You need to provide three examples for full credit.

Use the content reading and the Online Resource Center to help answer the essay questions. Use the 1-3-1 writing technique (introduction-support-conclusion) to answer the question.

Topics to help support your answer:

NAFTA(North American Free Trade Agreement)
Embargo of Cuban goods (sugar, cigars)
World Trade Organization
General Agreement on Tariffs and Trade (GATT)