Specialization 1. How does Iran specialize to increase trade? 2. How does Israel specialize to increase trade? 3. How does Saudi Arabia specialize? Specialization Factor Group 3   Saudi Arabia, Iran, Iraq, and Kuwait export millions of barrels of oil every day. The U.S. exports food, medicine, and raw materials to Middle Eastern countries. The United States imports oil from the Middle East because it does not have enough oil for the country’s needs. In the past, Iran has made some efforts to export goods other than oil, but its prices were too high to be competitive so it turned back to oil. Israel imports rough diamonds and exports the finished product: cut and polished diamonds. Instructional Approach(s): The slide reviews content from the Factors of Trade and Economic Growth Activity [linked on the curriculum map]. The teacher should ask the class to identify specialization in countries of the Middle East and the supporting statements from the “Factor Group”. After briefly discussing the evidence of specialization, click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

5. Which country was hurt by a trade barrier? Why? Trade Barriers Factor Group 2   In the past two decades, the United States has had several embargoes against Iran because of Iran’s involvement with terrorism. When Saudi Arabia wanted to join the World Trade Organization (WTO), it lifted its long-standing embargo against all trade with Israel. The Free Trade Agreement (FTA) signed by the United States and Israel eliminated all duties and other restrictions on trade in goods between the two countries. 4. Which of the three countries was affected positively by a trade barrier. Why? 5. Which country was hurt by a trade barrier? Why? Instructional Approach(s): The slide reviews content from the Factors of Trade and Economic Growth Activity [linked on the curriculum map]. The teacher should ask the class to identify trade barriers in countries of the Middle East and the supporting statements from the “Factor Group”. After briefly discussing the evidence of trade barriers, click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

Gross Domestic Product (GDP) Economic growth in a country is measured by the country’s Gross Domestic Product (GDP) in one year GDP = the total of goods and services produced in one year within a country Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students.

GDP per capita is a measure of the total output of a country that takes the GDP and divides it by the number of people in the country. Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students.

Investments in Human Capital Human Capital: Education and training Education and the abilities it develops create a smarter and more productive workforce, which leads to greater economic growth. Instructional Approach(s): The teacher should review the concept of investing in human capital with the students.

GDP per capita (person) 6. In which country would you most prefer to live? Why? 7. Least prefer? Why? Country Literacy GDP per capita (person) Life Expectancy Unemployment Rate Afghanistan 38% $2,000 51 35% Iran 87% $16,500 71 23% Israel 98% $33,400 82 12% Lebanon 94% $17,900 77 17% Saudi Arabia 95% $52,800 75 28% Instructional Approach(s): The teacher should give students 1-2 minutes individually to look over the table and write down their responses. Then, have students get with a partner and share their responses. When ready, call on groups or students from the class to share their responses. The teacher should walk around to facilitate the discussions and redirect students as needed. When ready, click to the next slide to discuss the concepts of the slide.

Human Capital, Literacy Rate, and Standard of Living If you can read, you can learn. If you can learn, you can improve your work skills, and get a better job that pays a better salary. If you have a better salary, you can improve your standard of living. A country that improves the literacy rate among its citizens will improve the standard of living within that country and improve its economy. Educated and skilled workers are an important factor in a country’s economic growth. Instructional Approach(s): The teacher should present the information on the slide

Capital: Factories, Machinery, Technology, Roads, Equipment, etc. Investment in Capital Capital: Factories, Machinery, Technology, Roads, Equipment, etc. Investment in capital helps economic growth by providing workers with the best and newest tools which makes them more productive, and increases a country’s GDP. Instructional Approach(s): The teacher should review the concept of investing in capital with the students.

Natural Resources Natural resources are materials or substances that occur in nature and can be used for economic gain. Natural resources are the fuel for industry and a source of income when exported to other countries. Instructional Approach(s): The teacher should review the concept of natural resources with the students.

The more entrepreneurs a country has, the higher the country’s GDP Entrepreneur: someone who has an idea for a good or service and takes the risks to produce it. They use human, capital, and natural resources to produce their product. Entrepreneurship creates jobs and better materials, products, technologies, etc. The more entrepreneurs a country has, the higher the country’s GDP Instructional Approach(s): The teacher should review the concept of entrepreneurship with the students.