Transcript economicsRamsell ppt2

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.
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Exchange of currencies
Specialization
Imports/Exports
Diversify
Trade barriers- tarriff, quota, embargo
OPEC
Inflation
Economic Spectrum-SW ASIA
Exchange of Currencies
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an exchange rate (also known as the foreignexchange 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
– When countries
focus on producing certain goods to
make them more efficiently and
quickly.
 Specialization
Specialization
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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.
IMPORT
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.
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What are examples of
goods that we import?
-capital goods (computers,
telecommunications eq.,
office machines), consumer
goods (automobiles,
clothing, medicines
IMPORT
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
EXPORT
To send or
transport (a
commodity, for
example) abroad,
especially for
trade or sale.
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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
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
– to add variety to
something. There is danger in
only producing one thing.
 Diversify
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
Trade Barriers: 2)Quota
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a limitation on imports; "the quota for
Japanese imports was negotiated"
any regulation or policy that restricts
international trade
Trade Barriers: 3)EMBARGO
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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.
EMBARGO
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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
OPEC
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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.
Because of their ability to adjust
production levels, they possess a great
deal of influence on the price of oil.
Inflation
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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
Sketch this in your notes:
Israel
68%
Iran
45%
Saudi Arabia
64%
Iraq
Pure
Command
Turkey
Pure
Market
Economic Systems
The Four Types
The Four Types of Economic Systems
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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?
Traditional Economy
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Family or Community
based Economic
System that relies on
custom and ritual to
make its choices.
Examples:
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Aborigines
Amazon Tribes
Any Substainance
Economy
Market Economy
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Individual or Consumer
based Economic
System that relies on
the consumption
choices of consumers.
Examples:
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*The U.S.A.
*Japan
Any Capitalist Economy
Command Economy
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Centrally Controlled
Economy where the
Government makes all
decisions.
Examples:
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Cuba
China
North Korea
Any Communist Country
or Dictatorship
Mixed Economy
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Economic System that
incorporates some Governmental
involvement into a Market Based
Economy.
Examples:
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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
Find the following information on
Israel, Saudi Arabia, and Iran using
cia.gov worldfactbook
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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.