Middle East/Africa Middle East/Africa Economic Terms from the Economic Terms from the

77thth grade standards grade standards

Take notes! Quiz to come! Take notes! Quiz to come!

Distribution EconomyDistribution Economy

A distribution economy is dependent A distribution economy is dependent completely upon one resource for their completely upon one resource for their finances (AKA finances (AKA specializationspecialization))

An example of a distribution economy is An example of a distribution economy is any Middle Eastern country that relies any Middle Eastern country that relies upon oil productionupon oil production

Market EconomyMarket Economy

A country which practices free enterprise A country which practices free enterprise with no government involvementwith no government involvement

An example of a market economy could be An example of a market economy could be a small scale community or village that a small scale community or village that uses bazaars and barteringuses bazaars and bartering

Mixed EconomyMixed Economy

An economic system in which some An economic system in which some businesses are government run and some businesses are government run and some are free enterprise.are free enterprise.

The U.S. is an example of a mixed The U.S. is an example of a mixed economyeconomy

Voluntary TradeVoluntary Trade

Voluntarily purchasing something where Voluntarily purchasing something where both groups are financially or mutually both groups are financially or mutually benefitedbenefited

One group volunteers to sell it, another One group volunteers to sell it, another volunteers to buy itvolunteers to buy it

Ex: Persian Rugs in Iran, Apricots in Ex: Persian Rugs in Iran, Apricots in TurkeyTurkey

ImportImport

Goods brought into one country from Goods brought into one country from another through trade or saleanother through trade or sale

We import oil from the Middle EastWe import oil from the Middle East

ExportExportGoods and services traded with or sold Goods and services traded with or sold to other countriesto other countriesSaudi Arabia exports oil to the rest of Saudi Arabia exports oil to the rest of the worldthe world

GDPGDP

Total value of all goods and services Total value of all goods and services produced in a country in a given time produced in a country in a given time periodperiod

Example: In 2007, Jordan calculated the Example: In 2007, Jordan calculated the value of its goods and services at 16.01 value of its goods and services at 16.01 billion dollars. billion dollars.

Trade BarriersTrade Barriers

Any law or practice that a government Any law or practice that a government uses to limit free trade between uses to limit free trade between countries…it could be a political or military countries…it could be a political or military obstacle to tradeobstacle to trade

Examples: chokepoints, military Examples: chokepoints, military blockades, Iranian sanctions, Israel and blockades, Iranian sanctions, Israel and the Muslim Worldthe Muslim World

CurrencyCurrency

Something in movement as a standard of Something in movement as a standard of trade (usually the money used for trade)trade (usually the money used for trade)

To give something away and get something back as a substitute (the process of trade)

ExchangeExchange

Human CapitalHuman Capital

This is knowledge and skills that allow This is knowledge and skills that allow workers to produce goods and services workers to produce goods and services and earn an income.and earn an income.

Example: A company that invests in Example: A company that invests in training for its workers.training for its workers.

Traditional EconomyTraditional Economy

Subsistence-level (survival, agricultural-Subsistence-level (survival, agricultural-based) economybased) economy

Example: much of Sub-Saharan Africa… Example: much of Sub-Saharan Africa… any country or community where food is any country or community where food is raised for survival rather than INCOMEraised for survival rather than INCOME

CommodityCommodity

A valuable or useful economic goodA valuable or useful economic good Example: oil is a commodity for the Example: oil is a commodity for the

countries bordering the Persian Gulf in the countries bordering the Persian Gulf in the Middle East along with minerals mined in Middle East along with minerals mined in North AfricaNorth Africa

EntrepreneurEntrepreneur

Someone who organizes, manages, and Someone who organizes, manages, and assumes business risksassumes business risks

Ismail Pasha (Suez Canal) is an exampleIsmail Pasha (Suez Canal) is an example

Command EconomyCommand Economy

An economic system in which the An economic system in which the government decides what goods will be government decides what goods will be produced, how they will be produced, and produced, how they will be produced, and how they will be distributedhow they will be distributed

The strict Islamic law present in Saudi The strict Islamic law present in Saudi Arabia borders on a command economy, Arabia borders on a command economy, but true examples include North Korea but true examples include North Korea and Cubaand Cuba

OPECOPEC

The Organization of Petroleum Exporting The Organization of Petroleum Exporting Countries works to set a fair price for oil Countries works to set a fair price for oil traded throughout the world.traded throughout the world.

Supply & DemandSupply & Demand

When you have a lot of something the When you have a lot of something the price goes down and when you have little price goes down and when you have little of it the price goes up! of it the price goes up!

Example: When Iraq invaded Kuwait and Example: When Iraq invaded Kuwait and began destroying their oil pipelines, the began destroying their oil pipelines, the price of oil went up because the supply price of oil went up because the supply was lower but the demand remained high.was lower but the demand remained high.