FSMS 7 th Grade Social Studies; Unit 3 Production, Distribution & Consumption (Voluntary Trade/Specialization/Barriers/OPEC) October 20 th – 22 nd ; Day Georgia Standard SS7E6a.b.c

Standard SS7E6 SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East). a. Explain how specialization encourages trade between countries.

Agenda Message: Agenda Message: Progress Reports go home today. 30-Question Take Home Quiz is due tomorrow. CDA II is Nov. 20 th. Standard: Standard: SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia and how specialization encourages trade between countries. Essential Question for Wednesday; 11/11/15: Essential Question for Wednesday; 11/11/15: Why do countries trade with one another? Warm-Up Warm-Up: How do economist measure economies? TODAY WE WILL: 1. Complete Comparative Economies Worksheet 2. Start International Trade, Specialization, Trade Barriers

E.Q. Answer for November 11, 2015 E.Q. Answer for November 11, 2015: In international trade, no country can be completely self-sufficient (produce all the goods and services it needs). Therefore countries trade with one another to get the goods they need. Warm-Up Answer: The primary tool economist use to measure the growth of economies is Gross Domestic Product.

Agenda Message: Agenda Message: After-school tutoring is TODAY from 4-5p. CDA II is Friday Nov. 20 th. CDA II Study Guides go home TOMORROW! Standard: Standard: SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia and how specialization encourages trade between countries. Essential Question for Thursday; 11/12/15: What is Specialization and why is it important to international trade? Warm-Up Warm-Up: Name two factors that encourage economic growth? TODAY WE WILL: 1. Complete Comparative Economies Worksheet 2. Start International Trade, Specialization, Trade Barriers

E.Q. Answer for November 12, 2015 E.Q. Answer for November 12, 2015: Specialization (products a country makes best and that are in demand on the world market) is a way to build a growing economy and to earn money to buy items that cannot be made within your own country. Warm-Up Answer: Human Capital Capital Entrepreneurs Natural Resources

Why do countries participate in International Trade? In international trade, no country can be completely self-sufficient (meaning produce all the goods and services it needs). As a result countries trade with one another in order to buy the goods and services they do not have in their own countries.

Specialization Specialization represents products a country makes “best” and that are in demand on the world market. It is a way to build a growing economy and to earn money to buy items that cannot be made locally. Because of this, countries specialize in producing those goods and services that they can provide most efficiently.

Specialization cont. They then look for other countries who may need those goods and services so they can sell their products to countries that need them. The money earned by such sales then allows the purchase of other goods and services the initial country was unable to produce.

Specialization cont. Some countries in Southwest Asia are very rich in oil and natural gas, but they lack farmland and the ability to produce food. Saudi Arabia for example, is able to specialize in the production of oil and gas and sell these products at great profit on the world market. The money earned in this trade can be used to purchase food and technology needed to make their agriculture system more efficient.

Specialization cont. Israel is another example of specialization. Israel has little in the way of oil wealth, but they have become leaders in agricultural technology even though they have a limited supply of land suitable for farming. They can sell this technology to earn the money to supplement their limited production of food.