1. Southwest Asia The Middle East
FSMS
7th Grade Social Studies; Unit 3
Production, Distribution & Consumption
(Voluntary Trade/Specialization/Barriers/OPEC)
October 20th – 22nd; Day 34-36
Georgia Standard SS7E6a.b.c

2. The Middle East Production, Distribution & Consumption
Standard SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East). b. Compare and contrast different types of trade barriers such as tariffs, quotas, and embargos.

3. FIRST FIVE Agenda Message:
Monthly Social Studies Progress Reports go home Monday, October 31st. Government & Economics Quiz make-up today for students absent last Friday.
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 Monday; 10/24/16: What are Trade Barriers?
Warm-Up: Which factor that influences economic growth deals with the knowledge and skills of workers?
TODAY WE WILL:
International Trade, Specialization, Trade Barriers

4. Answers
E.Q. Answer for Monday October 24th: Trade Barriers are anything that slows down or stops trade between countries. Warm-Up: Human Capital

5. FIRST FIVE Agenda Message:
Government/Economics Quiz scores have been posted into Grade Book. Social Studies Monthly Progress Reports go home October 31st.
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 Tuesday; 10/25/16: What trade barrier does OPEC use to achieve its dual goals of controlling the production and price of oil on the world market?
Warm-Up:
What is the definition for economic Specialization?
TODAY WE WILL:
International Trade, Specialization, Trade Barriers

6. ANSWERS
E.Q. Answer for Tuesday October 25th: OPEC uses sets quotas (limits) on the daily production of oil and thereby controls the price of oil on the world market. Warm-Up: 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.

7. The Middle East Production, Distribution & Consumption
Trade Barriers Trade barriers are anything that slows down or prevents one country from exchanging goods with another. Some trade barriers are put in place to protect local industries from lower priced goods made in other countries. Other times trade barriers are created due to political problems between countries. Trade is stopped until the political issues are settled.

8. The Middle East Production, Distribution & Consumption
Trade Barriers cont. The countries in Southwest Asia, as in most parts of the world, have experienced trade barriers at one time or another. Tariffs A tariff is a tax placed on goods when they are brought into one country (imported) from another country.

9. The Middle East Production, Distribution & Consumption
Tariffs cont. The purpose of a tariff is usually to make the imported item more expensive than a similar item made locally. This sort of tariff is called a “protective tariff” because it protects local manufacturers from competition coming from cheaper goods made in other countries.

10. The Middle East Production, Distribution & Consumption
Tariffs cont. Most countries have tariffs on goods imported from other countries. Quotas A quota is a different way of limiting the amount of foreign goods that can come into a country. A quota sets a specific amount (or limit) on a particular product that can be imported or acquired in a given period.

11. The Middle East Production, Distribution & Consumption
Quotas cont. For example, Israel could decide that only 1500 cars could be brought into the country from Japan in a given year. That would make it more likely that people buying cars would have to buy Israeli-made cars if Japanese cars were not available.

12. The Middle East Production, Distribution & Consumption
Embargos A third type of trade barrier is called an embargo. (An embargo is when one country announces that it will no longer trade with another country in order to isolate the country and cause problems with that country’s economy). Embargos usually come about when two countries are having political disputes.

13. The Middle East Production, Distribution & Consumption
Embargos cont. A good example of an embargo is the decision by the OPEC countries to stop all sales of oil and gas to the countries supporting Israel in the 1973 Arab-Israeli war.

14. The Middle East Production, Distribution & Consumption
Standard SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East). c. Explain the primary function of the Organization of Petroleum Exporting Countries (OPEC).

15. FIRST FIVE Agenda Message:
Social Studies Monthly Progress Reports go home Monday, October 31st.
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; 10/26/16: Describe why OPEC plays such a large role in the world’s economy.
Warm-Up:
Why do most countries in the world have a mixed-economy?
TODAY WE WILL:
International Trade, Specialization, Trade Barriers

16. ANSWERS
E.Q. Answer for Wednesday October 26th: OPEC controls the production and thereby the price of oil in the world market on a daily basis Warm-Up: Countries have found that it takes a mix of consumerism and government protection in order for their economies to run efficiently while at the same time providing government required safeguards

17. The Middle East Production, Distribution & Consumption
Organization of Petroleum Exporting Countries (OPEC) The Organization of Petroleum Exporting Countries (OPEC) was created in 1960 by some of the countries with large oil supplies who wanted to work together to try to regulate the supply and price of the oil they exported to other countries. The first five countries to join OPEC were Kuwait, Iraq, Saudi Arabia, Iran, and Venezuela.

18. The Middle East Production, Distribution & Consumption
OPEC cont. These countries, along with others who have joined since 1960, continue to decide; a. how much oil they will produce, and that determines b. the price of oil on the world market. When they produce less oil, the price on the world market goes up. When they increase production, the price on the world market goes down.