Southwest Asia The Middle East FSMS 7th Grade Social Studies; Unit 3 Production, Distribution & Consumption (Foreign Exchange Rates) October 22nd; Day 37 Georgia Standard SS7E6c.d

The Middle East Production, Distribution & Consumption Standard SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East). d. Explain why international trade requires a system for exchanging currencies between nations.

FIRST FIVE Agenda Message: Social Studies Monthly Progress Reports go home Monday, October 31st. Earn a homework grade of “100” by getting them signed and returned to Mr. Smith by Tuesday, November 1st. Standard: Explain why international trade requires a system for exchanging currencies between nations. E.Q. Thursday; 10/27/16: Why does International Trade require a system for exchanging different currencies between nations? Warm Up: Briefly explain why nations trade with one another. TODAY WE WILL: Foreign Exchange Rates/Exercise Environmental Issues

Answers E.Q. Answer for Thursday; 10/27/16: Each country has their own currency or money. Different currencies have different values. In international trade, countries must have a system to exchange their currencies with those used by other countries around the world. This system ensures that no one gets cheated in making a trade. Warm Up Answer: No Country is completely self-sufficient (meaning it has all the products, goods and services that it needs), as a result, countries trade with one another for those items they do not or cannot produce themselves.

The Middle East Production, Distribution & Consumption Currency & Exchange Rates Most of the countries in Southwest Asia have their own type of currency (money). In order for countries to pay for goods as they trade with each other, the money from the 1st country must be converted (changed) into the money of the 2nd country. This system is known as foreign exchange.

The Middle East Production, Distribution & Consumption Currency & Exchange Rates cont. Countries must be able to exchange their currencies with those used by other countries around the world. In most of Western Europe, currency is called the Euro. In Southwest Asia, there are many different types of currency (money). In order for them to trade with each other, they have to be able to figure out what goods cost in each currency.

The Middle East Production, Distribution & Consumption Currencies of SWA vs. the U.S. Dollar Saudi Arabia One Saudi Riyal = $0.27 in U.S. Dollars Iraq One Iraqi Dinar = $0.0009 in U.S. Dollars Iran One Iranian Rial = $0.000033 in U.S. Dollars Israel One Israeli New Shekel = $0.26 in U.S. Dollars Turkey One Turkish Lira = $0.35 in U.S. Dollars Afghanistan One Afghan Afghani = $0.014 in U.S. Dollars

The Middle East Production, Distribution & Consumption What would $100 U.S. exchange for in the following currencies? Saudi Riyal = 370 Riyal Iraqi Dinar = 111,111 Dinar Iranian Rial = 3,030,303 Rial Israeli New Shekel = 384.6 New Shekel Turkish Lira = 285.6 Lira Afghan Afghani = 7,142.9 Afghani

FIRST FIVE Agenda Message: Social Studies Progress Reports go home Monday, October 31st. CDA II is scheduled for November 10th. Standard: Explain why international trade requires a system for exchanging currencies between nations. E.Q. Friday; 10/28/16: How has the uneven distribution of water led to conflicts between countries in SWA? Warm Up: How does the use of chemical fertilizers lead to water pollution? TODAY WE WILL: Water as an environmental issue in SWA

ANSWERS E.Q. Answer for Thursday; 10/27/16: All countries in SWA need water for human consumption, cooking, cleaning and industrial purposes. Conflicts can occur when one country takes an action which adversely affects the water supply og another country, i.e. building of dams along a major river. Warm Up Answer: Overuse of chemical fertilizers can cause salts to build up in the soil leading to soil pollution, a condition where the growing of crops is very difficult.