1. How do economic factors influence the Middle East?
Essential Question
How do economic factors influence the Middle East?
Instructional Approach(s): The teacher should introduce the essential question for the lesson.

2. Standards
SS7E6a. Explain how specialization encourages trade between countries.
SS7E6b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos.
SS7E7a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).
Instructional Approach(s): The teacher should introduce the standards that align to the essential question.

3. Standards
SS7E7b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).
SS7E7c. Explain the role of oil in these countries’ economies.
SS7E7d. Describe the role of entrepreneurship.
SS7G8e. Evaluate how the literacy rate affects the standard of living.
Instructional Approach(s): The teacher should introduce the standards that align to the essential question.

4. Factors of Trade and Economic Growth Activity
After the Factors of Trade and Economic Growth Activity, use the remaining slides to review economic factors that affect Southwest Asia.
Instructional Approach(s): The teacher should facilitate the Factors of Trade and Economic Growth Activity [linked on the curriculum map]. Individually or in small groups, students read “economic growth factor cards” to determine whether the economic factors are present or absent in three countries of Southwest Asia (Middle East). If conducting the activity individually or in small groups is not preferred, the teacher can give each student a copy of the chart for the activity and use the ppt slides to complete the chart as a class. The chart would serve as the students’ notes for the lesson.

5. Countries specialize in what they do best.
Specialization
Countries specialize in what they do best.
Instructional Approach(s): The teacher should review the concept of specialization with the students.

6. Specialization increases trade because a country can get what it needs at the lowest cost when produced by someone who specializes in producing that item.
Instructional Approach(s): The teacher should review the concept of specialization with the students.

7. 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.
Israel imports rough diamonds and exports the finished product: cut and polished diamonds.
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
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.

8. Factors of Trade & Economic Growth Specializes to increase trade
Specialization
Factors of Trade & Economic Growth
Iran
Israel
Saudi Arabia
Specializes to increase trade
Iran exports millions of barrels of oil every day.
Israel imports rough diamonds and exports the finished product: cut and polished diamonds
Saudi Arabia exports millions of barrels of oil every day.
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia.

9. Turn to an elbow partner and describe how Iran, Israel, and Saudi Arabia specialize to increase trade.
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses.

10. Trade Barriers
Countries sometimes set up trade barriers to restrict trade because they want to sell and produce their own goods
Tariff: a tax placed on imported goods
Quota: a restriction on the amount of a good that can be imported
Embargo: trade is forbidden with another country
Instructional Approach(s): The teacher should review the concept of trade barriers with the students.

11. TRADE BARRIERS
Tariffs: higher price on imports = lower demand on imports = higher demand on domestic goods
Instructional Approach(s): The teacher should present the information on the slide.

12. TRADE BARRIERS
Quotas: “supply shortage” = higher price on imports = higher demand on domestic goods
Instructional Approach(s): The teacher should present the information on the slide.

13. Embargoes: NO trade at all!
TRADE BARRIERS
Embargoes: NO trade at all!
Instructional Approach(s): The teacher should present the information on the slide.

14. 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.
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.

15. Factors of Trade & Economic Growth Effected by Trade Barriers
Iran
Israel
Saudi Arabia
Effected by Trade Barriers
The U.S. has had several embargoes against Iran because of Iran’s involvement with terrorism.
A trade agreement was signed by the U.S. and Israel that eliminated restrictions on trade between the countries.
For years, Saudi Arabia had an embargo against all trade with Israel.
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia.

16. Turn to an elbow partner to discuss which of the three countries was affected positively by the presence or absence of a trade barrier. Why?
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses. Of the descriptions given, Israel would have been affected in a positive way because restrictions on trade were eliminated; however, students may also point out that Israel could have been affected negatively by the trade embargo imposed by Saudi Arabia. Due to embargoes, the people of Iran and Saudi Arabia could have been more negatively affected.

17. Investments in Human Capital
Human Capital: Education and training
Instructional Approach(s): The teacher should review the concept of investing in human capital with the students.

18. Investments in Human Capital
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.

19. Investment in Human Capital
Factor Group 4
Israel has highly educated workers and a large number of scientists and engineers.
Iran has high unemployment because young Iranians have not been trained to do jobs.
Saudi Arabia is in the early stages of revising its entire education system.
The educational system in Iran is weak and many educated Iranians are seeking work in other countries.
Israel invests in its schools and has a literacy rate of 97%, the highest in the Middle East.
For the past several decades, Saudi Arabia has sent university students abroad for education.
Iran has begun to raise the priority of education and adult literacy by building new schools and expanding public colleges.
Instructional Approach(s): 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 investing in human capital in countries of the Middle East and the supporting statements from the “Factor Group”. After briefly discussing the evidence of investing in human capital, click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

20. Investment in Human Capital
Factors of Trade & Economic Growth
Iran
Israel
Saudi Arabia
Makes Investments in Human Capital
High unemployment due to lack of training; a weak education system; it has started to raise the priority of education and literacy
Has highly educated workers; invests in schools; has the highest literacy rate among Middle East countries (97%)
Is revising its education system; has sent university students abroad to study
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia.

21. GDP per capita (person)
Think, Pair, Share Examine the table below. In which country would you most prefer to live? Why? 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.

22. Based on current data taken from the CIA World Factbook in 2015
There is a relationship between literacy and human capital in terms of people’s ability to produce income and have a better life.
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 present the information on the slide and discuss some of the examples within the chart that illustrate the concept. The teacher may want to ask students why Saudi Arabia has such as higher GDP than others. Oil is the factor that gives Saudi Arabia a higher GDP per capita.
Based on current data taken from the CIA World Factbook in 2015

23. 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

24. Capital: Factories, Machinery, Technology, Roads, Equipment, etc.
Investment in Capital
Capital: Factories, Machinery, Technology, Roads, Equipment, etc.
Instructional Approach(s): The teacher should review the concept of investing in capital with the students.

25. 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.

26. Investment in Capital Factor Group 1
Israel has a modern, well developed infrastructure and continues to upgrade it by investing in services like mass transit (transportation) systems and new highways.
Saudi Arabia is planning a massive, multi-billion-dollar investment in a railway project that will move shipments to and from its ports faster.
While Iran has generous oil reserves, it does not produce as much oil as it could because the country invests only a small percentage of its oil profits into improving oil facilities and the country’s infrastructure (organization).
Saudi Arabia has built factories and increased spending on the development of infrastructure (organization).
Iran has started to invest in its telecommunications networks, roads, and machinery.
Instructional Approach(s): 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 investing in capital in countries of the Middle East and the supporting statements from the “Factor Group”. After briefly discussing the evidence of investing in capital, click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

27. Factors of Trade & Economic Growth
Investment in Capital
Factors of Trade & Economic Growth
Iran
Israel
Saudi Arabia
Makes Investments
in Capital
Invests only a small % of oil profits into improving facilities and organization; has started to invest in telecommunication systems, roads, and machinery
Has modern, well-developed infrastructure (organization) and improves it by investing in transit systems and new highways
Is planning a huge investment in a railway system to move shipments to ports faster; has built factories and increased spending for infrastructure (organization)
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia.

28. Turn to an elbow partner to discuss which of the three countries has made the most improvement in the investment of capital (human and physical). Why?
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses. Possible Answer: Saudi Arabia has made the most improvements because they are taking more steps to investment. Israel is already investing heavily into human and physical capital which is evident in its economic success. Iran is taking smaller steps towards investment.

29. Natural Resources
Natural resources are materials or substances that occur in nature and can be used for economic gain.
Instructional Approach(s): The teacher should review the concept of natural resources with the students.

30. 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.

31. Instructional Approach(s): The teacher should use the diagram on the slide to illustrate that Southwest Asia’s main resource is Oil and that Southwest Asia provides more oil than any other area.

32. Natural Resources Factor Group 7
Saudi Arabia’s economy is anchored in oil. Money from oil transformed Saudi Arabia from a poor society to a very wealthy society.
Oil is what keeps the economy and GDP of Iran growing, providing the majority of government revenues.
Despite being in the otherwise oil-rich Middle East, Israel is low on natural resources. The country's economic stability is largely due to its advanced high-tech region and agriculture, rather than its production of raw materials.
Instructional Approach(s): 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 natural resources in countries of the Middle East and the supporting statements from the “Factor Group”. After briefly discussing the evidence of natural resources, click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

33. Factors of Trade & Economic Growth Presence of natural resources
Iran
Israel
Saudi Arabia
Presence of natural resources
Oil provides the majority of revenue (money). This could be considered a negative too. Why?
Israel is low on natural resources (but its economy is successful because of its investment in capital and high-tech industries)
Saudi Arabia’s economy is dependent on oil. This could be considered a negative too. Why?
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia.

34. Instructional Approach(s): The teacher should review the concept of entrepreneurship with the students.
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.

35. The more entrepreneurs a country has, the higher the country’s GDP
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.

36. Entrepreneurship Factor Group 5
Israel’s policies, including its tax structure, encourage the growth of small businesses.
To start a new business or develop a new product, people in Iran have to overcome many obstacles like getting credit from a bank.
Saudi Arabia has cut down the government requirements to start a business.
Israel has a Technological Incubator Program for people in order to promote the development of innovative technology.
Israel has programs to train immigrants, Arab-Israelis, and people over 55 to start their own business.
Since there is little training available in Iran, new business owners have a difficult time hiring good managers.
International investors have started an institute in Saudi Arabia to support new business owners and give them a place to start a business.
Instructional Approach(s): 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 entrepreneurship in countries of the Middle East and the supporting statements from the “Factor Group”. After briefly discussing the evidence of entrepreneurship, click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

37. Factors of Trade & Economic Growth Encourages Entrepreneurship
Iran
Israel
Saudi Arabia
Encourages Entrepreneurship
Policies encourage the growth of small business; it promotes the development of innovative technology; has training programs for people starting a new business
Has cut down government requirements to start a business; has an institute to support new business owners
Entrepreneurship is growing, but people have to overcome many obstacles to start a new business; there are new gov’t programs supporting entrepreneurship, but still little training
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia.

38. Gross Domestic Product (GDP)
Economic growth in a country is measured by the country’s Gross Domestic Product (GDP) in one year
Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students.

39. Gross Domestic Product (GDP)
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.

40. 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.

41. Economic growth is usually measured by calculating the percent increase in GDP from one year to the next. This is known as the GDP Growth Rate.
Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students.

42. GDP per capita and GDP growth rate can be useful when comparing one country to another because it shows the relative performance of the countries.
Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students.

43. GDP Review Videos [select one]
Gross Domestic Produce: The Economic Lowdown [7:51]
Instructional Approach(s): The teacher can select one of the videos to review the complex topic of GDP with students. A video is not necessarily, but may be needed to refresh the student’s knowledge of GDP.
What Exactly is GDP? [from economics unit]

44. Get with a seat partner. Each partner should share a 1-2 sentence explanation of GDP.
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses.

45. Gross Domestic Product (GDP)
Factor Group 6
The average Israeli citizen makes $33,400
The average Iranian citizen makes $16,500
The average Saudi citizen makes $52,800
The real growth rate for Israel in 2014 was 2.5%
The real growth rate for Iran in 2014 was 1.5%
The real growth rate for Saudi Arabia in 2014 was 3.6%
Instructional Approach(s): Instructional Approach(s): The slide reviews content from the Factors of Trade and Economic Growth Activity [linked on the curriculum map]. Click to the next slide to review the answers to the Factors of Trade and Economic Growth Chart.

46. Gross Domestic Product (GDP)
Factors of Trade & Economic Growth
Iran
Israel
Saudi Arabia
GDP Per Capita & GDP Growth Rate
GDP Per Capita: $16,500
GDP Growth Rate: 1.5%
GDP Per Capita: $33,400
GDP Growth Rate: 2.5%
GDP Per Capita: $52,800
GDP Growth Rate: 3.6%
Instructional Approach(s): The teacher should start with Iran and ask the class whether Iran gets a +/- sign in the box and share their reasoning. When ready, click the mouse to reveal the answer and briefly discuss the reasoning with the class. Then, follow the same steps with Israel and Saudi Arabia. Explain to students that each country receives a + sign simply because their GDPs have grown. However, particularly with GDP, explain to students how next year it could easily show a negative growth and be a – sign. In reality, GDP Growth should be compared over more than one year to see trends. The goal for any country would be continuous growth over time (even small growth is better than no growth).
Based on current data taken from the CIA World Factbook in 2015

47. Factors of Trade & Economic Growth
Based on GDP per capita and growth rate, which country has the strongest economy? Why? Weakest? Why?
Factors of Trade & Economic Growth
Iran
Israel
Saudi Arabia
GDP Per Capita & GDP Growth Rate
GDP Per Capita: $16,500
GDP Growth Rate: 1.5%
GDP Per Capita: $33,400
GDP Growth Rate: 2.5%
GDP Per Capita: $52,800
GDP Growth Rate: 3.6%
Instructional Approach(s): The teacher should pose the question to the class and either have a classroom discussion or ask for volunteers to answer the questions. In general, students might say that Saudi Arabia has the strongest economy because it has a higher GDP and higher growth rate. Ask students why someone could be hesitant in selecting Saudi Arabia as the stronger economy. Saudi Arabia’s economy is reliant on oil. A stronger economy might be one that is more diversified to sustain growth over time if things change. Iran should be identified as the weakest economy. It has lower GDP and a lower growth rate. In part due to Iran’s lack of investment in human and physical capital.
Based on current data taken from the CIA World Factbook in 2015

48. Economic Factors
Use the Index of Economic Freedom to compare the three countries of Southwest (Middle East) to the U.S.
Instructional Approach(s): The teacher should use the Index of Economic Freedom to compare the three Middle East countries to the U.S. The teacher may want to just compare the rankings and not the actual score. For example, the U.S. is ranked 12th in the world for economic freedom. Iran is ranked 171, Israel is ranked 33, and Saudi Arabia is ranked 77 in the world. The teacher can use details from the site to give more explanation to the factors included for the total ranking if desired.

49. Think, Pair, Share: Answer the four questions from the Factors of Trade & Economic Growth Activity
1. Based on all economic factors, which country do you think has the strongest economy? Why?
2. Based on all economic factors, which country do you think has the weakest economy? Why?
3. What could Iran do to increase its GDP Per Capita and GDP Growth Rate? Why?
4. Which factor of trade and economic growth do you think is the most important? Why?
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses.

50. Summarizer
Instructional Approach(s): Each student should complete the summarizer. The teacher should use the summarizer to determine the level of student mastery and if differentiation is needed.