Presentation on theme: "Georgia Performance Standard: SS7E7 The student will describe factors that influence economic growth and examine their presence or absence in Israel,"— Presentation transcript:
1 Georgia Performance Standard: SS7E7 The student will describe factors that influence economic growth and examine their presence or absence in Israel, Saudi Arabia, and Iran.E.Q. How is capital Goods and human capital related to a country’s gross domestic Product?
2 Gross Domestic Product: (GDP) The total value of goods and services produced in a country in a year. Must be produced, not just sold, so a BMW sold in the US, since it is made in Germany does not count towards our GDP, but it counts for Germany
3 Capital goodsHuman capitalMachines, factories, technologies, etc. used in production of goods and servicesEmployees, the humans, that produce goods and servicesInvesting in capital goods and human capital increases a countries GDP.
4 Natural resourcesare materials and components (something that can be used) that can be found within the environment. Every man-made product is composed of natural resources.
5 How do you invest in Capital goods? Investing in capital goods means that you spend money for newer or better capital with the goal of making a bigger profit. EX. Building more factories, upgrading machines, buying new technology
6 How do you invest in human capital? Investing in human capital means that you spend money to train or educate your employees with the goal of making a greater profit.EX. Technology training, further personal education, etc.
7 Saudi Arabia And iran Some of the largest oil producers in the world Human Capital Investment: turning out highly trained and well educated labor force particularly in the oil industryCapital Investment: Spends on goods related to oil industry, communication, and technologyIran as invests a great deal on technology for its defense industry
8 IsraelDepends on technology industries to make up for the country’s lack of natural resourcesHuman Capital Investment: Invests in training and technology related to medical field, agriculture technology, mining, and electronicsProvides high level of training and education!Capital Investment: Includes technology, industrial, communications, and defense industry
9 Entrepreneur: someone who is willing to take a risk to begin a new business with the hopes of making a return on their investmentThese new businesses or products pump goods and services into the economy creating an increase in the country’s GDP