Specialization Factor Group 3 Saudi Arabia Iran Iraq

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. 1. How does Iran specialize to increase trade? 2. How does Israel specialize to increase trade? 3. How does Saudi Arabia

Trade Barriers Factor Group 2 In the past two decades, the United States 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?

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

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.

Investments in Human Capital: Education and training Education and the abilities it develops create a smarter and more productive workforce, which leads to greater economic growth.

6. In which country would you most prefer to live? Why? 7. Least prefer? Why? 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% Country

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.

Investment in Capital: Factories, Investment in capital helps Machinery, economic growth by providing workers with the best and newest Technology, tools which makes them more Roads, Equipment, productive, and increases a etc. country’s GDP.

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.

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