2. Economics
definition 1: the
careful use of
money, resources,
and means of
production.
definition 2: the
system of how
money is made
and used within a
particular country
or region
3.
4. Economy of Southwest Asia
Oil was discovered in Iran
in 1908. It is now the
most important product in
the region’s economy.
Nearly half of the world’s
oil is in Saudi Arabia,
Iran, Kuwait, and Iraq.
Saudi Arabia is one of
the world’s largest
producers and one of the
largest exporters to the
U.S.
Most are nationalized or
government run.
6. Israel’s Economic System
Israel has a mixed economy that is also
technologically advanced. Israel’s
economic score is 72.8
The Israeli government and private Israeli
companies own and control the economy.
Israel does not have many natural
resources.
GDP: 350.9 billion USD (2017)
Israel has to import grain, oil, military
technologies, and many other goods.
7. High Tech!
In 2019, Israel was
ranked the world's
fifth most innovative
country by the
Bloomberg Index.
8. Israel’s Economic System
The country Specializes in
producing/exporting: high-tech
equipment, some crops, and cut
diamonds.
The service industry accounts for much of
Israel’s economy—areas such as
insurance, banking, retail, and tourism
account for over half of it.
Israel relies heavily on U.S. economic and
military aid.
10. Saudi Arabia’s Economic System
Saudi Arabia also has a mixed economy
with large amount of government control .
Saudi Arabia has an economic score of
64.4.
Saudi Arabia’s GDP is 683.8 billion USD
(2017).
Saudi Arabia’s main export is oil. Saudi
Arabia specializes in refining/ producing
oil.
Imports: machinery and equipment, food,
chemicals, motor vehicles, textiles
11.
12. Saudi Arabia’s Economic System
The oil industry has made the Saudi royal
family quite wealthy
In fact, several members of the royal
family are among the wealthiest people in
the world.
Oil accounts for well over half of the
country’s economy.
Oil funds the country’s education, defense,
transportation, health, and housing.
13. Crown Prince and the King
Saudi royal family net worth: $1.7
Trillion!!
15. Turkey’s Economic System
Turkey has a mixed economy, but the
government of Turkey controls the country’s
economy. Turkey’s economic score is 64.6
A large part of the country’s economy is based
on farming.
The Turkish government has had many disputes
with other countries over its use of natural
resources, such as the Euphrates River.
GDP: 851.1 billion USD (2017)
Imports: Petroleum oils, gold, iron.
17. Turkey’s Economic System
Clothing and textiles are the country’s major
industries/ specializations.
The service industry makes up about half of
Turkey’s economy, as it does Israel’s economy
Exports: Vehicles, Machinery, Iron, Steel,
Textiles, Gems.
The entrepreneur Aydin Dogan controls the
largest oil and gas company in Turkey, as well
as two television networks and two newspapers.
Such entrepreneurs are new to Turkey.
19. Pause: Make sure you have completed
your chart before moving forward.
1. Define the vocabulary terms
2.Lastly, read/ view the next slides about
Economic growth then answer the final
questions.
20.
21. Specialization
When one country can produce a good or
service at a lower opportunity cost than
another country.
This encourages trade with other countries
It helps the economy
Do you think Over Specialization could be
a problem? Why?
23. Tariff
A tariff is a tax placed on goods
when they are (imported) brought
into one country from another.
The purpose is to make the
imported item more expensive
than a similar item made locally.
24. EMBARGO
When one country announces that it will
no longer trade with another country in
order to isolate it and cause problems with
that country’s economy. This usually
happens when two countries are having a
political dispute.
25. OPEC
Organization of Petroleum Exporting
Countries
Iran, Iraq, Kuwait, Saudi Arabia,
Qatar, Libya, Algeria, Angola,
Venezuela, UAE, Nigeria, Ecuador
Influences the price and supply of oil
Not all Middle Eastern countries are a
part of OPEC
If Supply , what happens to
Price???
26.
27. Human Capital
The work force, education , training , and
knowledge/ skill that make it possible for
workers to earn a living producing goods
and services.
28. Israel’s Economic Growth
Economic growth has been difficult to achieve
for many Middle Eastern countries.
War is a major threat to the region’s economies.
For example, both war and a large number of
immigrants present challenges to the Israeli
economy.
The Israeli government has taken control of
certain economic activities in order to address
these problems.
The Israeli government controls most activities
related to agriculture.
29. Turkey’s Economic Growth
In the last century, the Turkish
government has played a major role in
helping its economy to grow.
After World War I, the Turkish
government invested large amounts of
money in Turkey’s weapons and steel
industries.
30. Turkey’s Economic Growth
After World War II, many people objected
to the Turkish government having so
much control over the economy.
By the 1980s, the government had begun
to allow private businesses more control.
Today, entrepreneurs play an important
role in Turkey.
31. Saudi Arabia’s Economic Growth
Some gulf countries invest money to make
their economies more diverse.
In the last few decades, Saudi Arabia has
begun encouraging the development of
industries other than oil in order to make
its economy stronger.
In 1976, the Saudi government created
the Saudi Basic Industries Corporation.
32. Saudi Arabia’s Economic Growth
The Saudi Basic Industries Corporation
invests in capital goods.
These capital goods have made the
country a steady producer of steel,
industrial gases, plastics, and
petrochemicals.
33. Summary questions
1. Describe the different economic systems and
potential of growth for Israel, Saudi Arabia and
Turkey.
2. Out of the three countries, which one has the
highest GDP, explain why you think they have
such a high GDP.
3. Do you think Over Specialization could be a
problem? Why?
4. Which country has the most economic
freedom? Why..
5. Which country has the least economic
freedom? Why..
