1. Presentation, Graphic Organizers, & Activities
Southwest Asia’s
VOLUNTARY TRADE & OPEC
VOLUNTARY
TRADE & OPEC
Presentation, Graphic Organizers, & Activities

2. STANDARDS:
SS7E5 Explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East).
Explain how specialization encourages trade between countries.
Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargoes.
Explain why international trade requires a system for exchanging currencies between nations.
Explain the primary function of the Organization of Petroleum Exporting Countries (OPEC).
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3. TEACHER INFO: CLOZE Notes
The next pages are handouts for the students to use for note-taking during the presentation. (Print front to back to save paper and ink.)
Check the answers as a class after the presentation.
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4. Voluntary Trade CLOZE Notes 1
Barriers
SW Asia
Specialization
Why Trade?
They are usually meant to help domestic producers _______________________ with foreign producers in the world marketplace.
Countries sometimes set up trade _______________________ because they want to sell and produce their own goods.
Political trade barriers are policies _______________________ to regulate trade.
Afghanistan is a _______________________ , so trade is difficult because it does not have ports to ship goods overseas.
Natural trade barriers include _______________________ , deserts, rainforests, or lack of access to bodies of water.
Trade barriers are natural or man-made _______________________ .
Turkey has a more diversified economy and exports coal, _______________________ , and some food to Europe.
The country imports rough diamonds and exports cut and _______________________ .
Israel specializes in the _______________________ .
There are plenty of countries around the world that _______________________ , and in turn, they export food, medicine, and raw materials, to the region.
Saudi Arabia, Iran, Iraq, and Kuwait specialize in _______________________ and export millions of barrels of oil every day.
The country selling the product _______________________ , and the country buying the product gets what it needs.
Specialization _______________________ among countries, because no country produces everything it needs.
It increases trade because a country can get what it needs at the _______________________ when produced by someone who specializes in producing that item.
Specialization is an _______________________ , and the cost of items produced is lower.
Because countries cannot produce all of the goods/services that it needs, they must specialize in _______________________ .
Voluntary trade is good for countries because it lets a country _______________________ and buy the resources it needs.
Countries trade goods because no country has _______________________ to produce every single thing its people need.
Voluntary trade occurs when different countries choose to engage in the _______________________ with one another.
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Voluntary Trade CLOZE Notes 1

5. Voluntary Trade CLOZE Notes 2
Examples
Embargoes
Quotas
Tariffs
The US has had several embargoes with Iran over the past twenty years because of Iran’s _______________________ .
After the 9/11 attacks on the United States, the UN place an embargo on Afghanistan and members could _______________________ to the country.
After Iraq invaded Kuwait in 1990, the United Nations placed an _______________________ , only allowing it to export enough oil to buy its citizens’ food.
In an embargo, nations _______________________ with a country at all.
Embargoes are another _______________________ to trade.
Quotas can cause shortages, which causes _______________________ .
For example, Israel’s government could protect the country’s rug manufacturers by _______________________ Turkish rugs imported per year.
Quotas are _______________________ on the amount of a good that can be imported into a country.
For example, Saudi Arabia and Egypt have recently _______________________ on food imports to help citizens cope with rapidly increasing food prices.
They cause the consumer to _______________________ for an imported item, thus increasing the demand for a lower priced-item produced domestically.
Tariffs are _______________________ placed on imported goods.
They are usually meant to help domestic producers _______________________ with foreign producers in the world marketplace.
Countries sometimes set up trade _______________________ because they want to sell and produce their own goods.
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Voluntary Trade CLOZE Notes 2

6. Voluntary Trade CLOZE Notes 3
Today
Function
OPEC
Exchange Rate
Currency Exchange
OPEC has _______________________ of its member countries and has helped prevent religious hatred from interfering with the world’s oil supply.
OPEC has generally been _______________________ .
These countries account for _______________________ of the world’s oil production and 73% of its known oil reserves.
Today, OPEC has expanded to _______________________ countries.
Oil prices rose and oil-producing countries _______________________ .
After OPEC was formed, oil production was controlled and the _______________________ worldwide.
Because of this, oil _______________________ and oil-producing countries made less money.
Before 1960, the amount of oil produced worldwide was _______________________ for it.
OPEC functions by increasing or decreasing the _______________________ each member nation produces.
OPEC sets the prices and _______________________ produced by its member nations.
It unifies _______________________ in order to promote stability in the world oil market and to ensure a regular supply of petroleum to other countries.
OPEC’s purpose is to _______________________ .
In 1960, Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela formed an organization called the Organization of _______________________ Countries (OPEC).
Foreign exchange makes it easier to trade all _______________________ .
For example, an exchange rate of 3 Turkish lira to the US dollar means that 3 lira are worth the _______________________ .
What the _______________________ in terms of another country’s currency is called the exchange rate.
Money from one country must be _______________________ of another country to pay for goods in that country.
Because countries have _______________________ , international trade requires a system for exchanging currencies between nations.
Currency is something that is _______________________ and can be used to purchase goods and services in a market.
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Voluntary Trade CLOZE Notes 3

7. Specialization, Trade Barriers, Currency Exchange, & OPEC
Ame
Southwest Asia’s
VOLUNTARY
TRADE
Specialization, Trade Barriers, Currency Exchange, & OPEC
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8. Specialization
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9. Why Trade?
Voluntary trade occurs when different countries choose to engage in the exchange of goods with one another.
Countries trade goods because no country has all the resources necessary to produce every single thing its people need.
Voluntary trade is good for countries because it lets a country sell its own resources and buy the resources it needs.
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10. Specialization
Because countries cannot produce all of the goods/services that they need, they must specialize in what they do best.
Specialization is an efficient way to work, and the cost of items produced is lower.
It increases trade because a country can get what it needs at the lowest cost when produced by someone who specializes in producing that item.
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11. Specialization
Specialization encourages trade among countries, because no country produces everything it needs.
The country selling the product makes a profit, and the country buying the product gets what it needs.
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12. SW Asia
Saudi Arabia, Iran, Iraq, and Kuwait specialize in oil production and export millions of barrels of oil every day.
There are plenty of countries around the world that import Middle Eastern oil, and in turn, they export food, medicine, and raw materials, to this region.
Petroleum accounts for 90% of Saudi Arabia’s exports, which means that the country specializes its economy in the oil industry.
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13. Saudi Arabia Oil Production
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14. SW Asia
Israel specializes in the diamond industry—it is the world’s largest exporter of processed diamonds.
The country imports rough gemstones from Switzerland and exports cut and polished diamonds all over the world.
Israel also exports a lot of medicines, aircraft parts, refined petroleum, and electronic circuits.
Turkey has a more diversified economy and has developed important export industries in gold, coal, textiles, and automobiles.
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15. Israel Diamond Exchange
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16. Trade
Barriers
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17. Barriers
Trade barriers are natural or man-made obstacles to voluntary trade.
Natural trade barriers include mountain ranges, deserts, rainforests, or lack of access to bodies of water.
Afghanistan is a landlocked country, so trade is difficult because it does not have ports to ship goods overseas.
Political trade barriers are policies passed by a government to regulate trade.
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18. © Brain Wrinkles

19. Barriers
Countries sometimes set up trade barriers to restrict trade because they want to sell and produce their own goods.
They are usually meant to help domestic producers remain competitive with foreign producers in the world marketplace.
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20. Tariffs Tariffs are taxes placed on imported goods.
They cause the consumer to pay a higher price for an imported item, thus increasing the demand for a lower priced-item produced domestically.
For example, Saudi Arabia and Egypt have recently lowered tariffs on food imports to help citizens cope with rapidly increasing food prices.
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21. Quotas
Quotas are limits on the amount of a good that can be imported into a country.
For example, Israel’s government could protect the country’s rug manufacturers by allowing only 1500 Turkish rugs imported per year.
Quotas can cause shortages, which causes prices to rise.
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22. Embargoes Embargoes are another political barrier to trade.
In an embargo, nations refuse to trade with a country at all.
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23. Examples
After Iraq invaded Kuwait in 1990, the United Nations placed an embargo on Iraq, only allowing it to export enough oil to buy its citizens’ food.
After the 9/11 attacks on the United States, the UN place an embargo on Afghanistan and members could not sell weapons to the country.
The US has had several embargoes with Iran over the past twenty years because of Iran’s involvement with terrorism.
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24. Currency
Exchange
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25. Currency Exchange
Currency is something that is assigned value and can be used to purchase goods and services in a market.
Because countries have different forms of currency, international trade requires a system for exchanging currencies between nations.
Money from one country must be converted into the currency of another country to pay for goods in that country.
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26. Afghanistan afghani
Turkish lira
Iranian rial
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27. Exchange Rate
What the currency of a nation is worth in terms of another country’s currency is called the exchange rate.
For example, an exchange rate of 3 Turkish lira to the US dollar means that 3 lira are worth the same as 1 dollar.
Foreign exchange makes it easier to trade all around the world.
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28. Exchange Rate Against US Dollar
Nation
Currency
Exchange Rate Against US Dollar
Turkey
Lira
2.9
Saudi Arabia
Riyal
3.7
Israel
Shekel
3.8
Afghanistan
Afghani
67.5
Iraq
Dinar
1,176
Iran
Rial
30,568
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29. Organization of the Petroleum Exporting Countries
OPEC
Organization of the Petroleum Exporting Countries
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30. OPEC
In 1960, Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela formed an organization called the Organization of Petroleum Exporting Countries (OPEC).
OPEC’s purpose is to regulate the price of oil.
It unifies petroleum prices in order to promote stability in the world oil market and to ensure a regular supply of petroleum to other countries.
OPEC sets the prices and amount of oil produced by its member nations.
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31. OPEC Conference 1960
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32. Function
OPEC functions by increasing or decreasing the amount of oil each member nation produces.
Before 1960, the amount of oil produced worldwide was greater than the demand for it.
Because of this, oil prices were low and oil-producing countries made less money.
After OPEC was formed, oil production was controlled and the demand increased worldwide.
Oil prices rose and oil-producing countries made more money.
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33. Today Today, OPEC has expanded to 13 member countries.
These countries account for about 42% of the world’s oil production and 73% of its known oil reserves.
OPEC has generally been successful for its members.
OPEC has improved the economies of its member countries and has helped prevent religious hatred from interfering with the world’s oil supply.
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34. Current OPEC Members
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35. TEACHER INFO: Instant Replay
Print off the Specialization Instant Replay handout for each student.
The students will draw a scene depicting specialization in action.
In the textbox, they will write a play-by-play (short summary) of what is happening in the scene.
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36. Specialization Instant Replay
Directions: Review the economic concept of “specialization” by drawing a scene depicting specialization in action on the TV below. Next, write a play-by-play breakdown of the scene in the textbox.
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37. TEACHER INFO: Trade Barriers Comic Strip
Print off the Comic Strip handout for each student.
The students will create a comic strip that shows each trade barrier in action.
They can choose to use actual countries, or they can create their own characters. *Info about the trade barriers should still be factual, though.
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38. Trade Barriers Comic Strip
Directions: Create a comic strip that shows trade barriers in action. You can use actual countries, or you can create your own characters. Be sure to include factual information about how each trade barrier works in your comic strip!
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39. TEACHER INFO: Extra! Extra!
Print off the Extra! Extra! handout for each student.
The students will write a news article about OPEC being formed. The article should include the purpose of OPEC.
In the “polaroid”, they will draw an action shot of something related to OPEC.
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40. Extra! Extra!
Directions: Write a news article that describes this important event: OPEC being formed in Add a catchy headline (top box) and an action shot (snapshot box). Be sure to include information about OPEC’s purpose.
Date: $
Article By:
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41. TEACHER INFO: FLIPPED Print off the FLIPPED handout for each student.
The students will write questions for the answers inside of the 6 circles.
When they are finished, have the students trade papers with an elbow buddy and check each other’s questions to make sure that they are correct.
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42. FLIPPED The answer is: SPECIALIZATION What is the question?
Directions: Create accurate review questions for the six answers below.
The answer is:
SPECIALIZATION
What is the question?
The answer is:
QUOTA
What is the question?
The answer is:
OPEC
What is the question?
The answer is:
EMBARGO
What is the question?
The answer is:
TARIFF
What is the question?
The answer is:
CURRENCY
EXCHANGE
What is the question?
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43. TEACHER INFO: Comprehension Check
Print off the Comprehension Check handout for each student.
Students will complete the assignment after discussing the presentation. This can also be used as a quiz!
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44. Comprehension Check Voluntary Trade
1. Give an example of specialization:
2. What are two advantages to specialization?
3. What type of trade barrier involves adding a special tax on imported goods?
4. What trade barrier restricts the quantity of an item that is brought into a country?
5. What is an embargo?
6. . How did the United Nations punish Iraq when it invaded Kuwait in 1990?
7. Why has the US placed several embargoes against Iran over the past two decades?
8. What does OPEC stand for?
9. Who were the founding members of OPEC?
10. What is OPEC’s function?
11. Why must people exchange currency?
12. What is worth more: one US dollar or one Turkish lira?
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Comprehension Check
Voluntary Trade

45. TEACHER INFO: TICKET OUT THE DOOR
Print out the exit slip page for each student (two-per-page).
Have the students write down what the most confusing part of today’s lesson was for them.
After class, read over the slips and address the “muddiest points” the next day. This is a helpful slip to use to see what needs to be taught again.
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46. Muddiest Point Muddiest Point
Name:
Name:
Muddiest Point
Muddiest Point
What is the most confusing part of the topic that we’re studying. Write something that you don’t understand below.
What is the most confusing part of the topic that we’re studying. Write something that you don’t understand below.
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