2. SS7E5: The student will analyze different economic systems. SS7E6: The student will explain how voluntary trade benefits buyers and sellers in SW Asia. SS7E7:The student will describe factors that influence economic growth and examine their presence or absence in Israel, Saudi Arabia, and Iran. Exchange of currencies Specialization Imports/Exports Diversify Trade barriers- tarriff, quota, embargo OPEC Inflation Economic Spectrum-SW ASIA

3. Exchange of Currencies an exchange rate (also known as the foreign- exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. 1 British pound sterling = 1.5694 US dollars

4. Specialization – When countries focus on producing certain goods to make them more efficiently and quickly.

5. Specialization Many countries specialize in producing the goods and services that are native to their part of the world. This specialization is the basis of global trade as few countries produce enough goods to be completely self-sufficient.

6. IMPORT To bring or carry in from an outside source, especially to bring in (goods or materials) from a foreign country for trade or sale. What are examples of goods that we import? -capital goods (computers, telecommunications eq., office machines), consumer goods (automobiles, clothing, medicines IMPORT

7. What are examples of goods that countries in Southwest Asia import? -Saudi Arabia: machinery, food, chemicals, textiles -Iraq: food, medicine, manufactured products -Iran: industrial raw materials, food, technical services -Turkey: machinery, chemicals, fuels

8. EXPORT To send or transport (a commodity, for example) abroad, especially for trade or sale. What are examples of goods that we export? Industrial supplies such as organic chemicals. Consumer products such as aircraft, computers, telecommunication products, motor vehicle parts

9. EXPORT What are examples of goods that countries in Southwest Asia export? -Saudi Arabia: petroleum & petroleum products -Iraq: crude oil, food & live animals -Iran: petroleum, chemical products, fruits & nuts -Turkey: apparel, food, textiles, metal manufactures

10. Diversify – to add variety to something. There is danger in only producing one thing.

11. Trade Barriers: 1)TARIFF What is it? A tax levied by governments on imports and occasionally on exports You may also see this called as a DUTY. Whose responsible for monitoring it in the US? US International Trade Commission – Wherever vessels enter the US either by land, air, or ocean

12. Trade Barriers: 2)Quota a limitation on imports; "the quota for Japanese imports was negotiated" any regulation or policy that restricts international trade

13. Trade Barriers: 3)EMBARGO 1. A government order prohibiting the movement of merchant ships into or out of its ports. 2. A prohibition by a government on certain or all trade with a foreign nation.

14. EMBARGO The U.S. State Department designates countries as “embargoed” due to political unrest, poor economical conditions, or pressure from the United Nations. Afghanistan China Cuba Cote d’ Ivore Congo Haiti Iran Iraq …and more

15. OPEC Organization of Petroleum Exporting Countries A collective of countries founded in 1960 that choose to collaborate in order to manage the exportation of their crude oil to the rest of the world.countriesfoundedorder manageexportationcrude oilworld Because of their ability to adjust production levels, they possess a great deal of influence on the price of oil.abilityadjust productionlevelspossess dealinfluencepriceoil

16. Inflation 1. a general and progressive increase in prices; "in inflation everything gets more valuable except money" The rise in prices over time. Ex: loaf of bread cost --$.18 in 1950 $1.99 in 2013

17. Economic Systems Pure Market Pure Command Iran 45% Saudi Arabia 64% Israel 68% Turkey Iraq Sketch this in your notes:

18. Economic Systems The Four Types

19. The Four Types of Economic Systems Four very different types of Economic Systems have evolved as different societies have placed different emphasis on different goals and priorities in their efforts to answer the Three Key Economic Questions: 1. What is to be produced? 2. How are the goods to be produced? 3. For whom are the goods produced?

20. Traditional Economy Family or Community based Economic System that relies on custom and ritual to make its choices. Examples: – Aborigines – Amazon Tribes – Any Substainance Economy

21. Market Economy Individual or Consumer based Economic System that relies on the consumption choices of consumers. Examples: – *The U.S.A. – *Japan – Any Capitalist Economy

22. Command Economy Centrally Controlled Economy where the Government makes all decisions. Examples: – Cuba – China – North Korea – Any Communist Country or Dictatorship

23. Mixed Economy Economic System that incorporates some Governmental involvement into a Market Based Economy. Examples: – The U.S.A. – Japan – Most “Modern” Economies Producers determine production but the government sets safety standards for products – United States – OSHA, FDA, Safety Laws that regulate trade Free enterprise – found with market/mixed economies

24. Find the following information on Israel, Saudi Arabia, and Iran using cia.gov worldfactbook Flag Country GDP Literacy Rate Natural Resources Population Type all of this information in a table in microsoft office (include a small picture of the flag for each country) All 3 tables should only take up 1 page. Verify with Mrs. Ramsell that you have completed all 3 countries and she will tell you when it’s okay to print your 1 page.