W ELCOME ! P LEASE WRITE IN YOUR AGENDA Warm-Up: What is an economy? Why is it important for a country? T URKEY SS7E5 T HE STUDENT WILL ANALYZE DIFFERENT ECONOMIC SYSTEMS. A) C OMPARE AND CONTRAST THE ECONOMIC SYSTEMS OF I SRAEL, S AUDI A RABIA, AND T URKEY. Turkey E CONOMIC S YSTEM OF T URKEY Mixed, but mostly command (emerging market) - Private businesses have control and ownership over key industries. The government controls the airlines, railroads, telephone, and televisions industries. - Least economic free out of three (Israel, Saudi Arabia, and Turkey) N ATURAL R ESOURCES Coal Iron Tobacco Cotton Grain Olives Manganese Zinc Lead Copper Bauxite Lignite Oil Hydroelectric power M AIN S OURCE OF I NCOME Service Industry Service Industry (46%) - Tourism growing Agriculture Agriculture (30%) - Crops and livestock Industry Industry (24%) - Manufacturing M AIN E XPORTS & I NDUSTRIES Industries Industries : textiles, mining, steel, food processing, autos, and electronics Main Exports Main Exports : apparel, food, textiles, metal goods, and transport equipment Main Trade Partner Main Trade Partner : Germany and SW Asian Nations GDP $960.5 billion 17 th largest globally Literacy Rate: 87.4% - Men: 95.3% - Women: 79.6% S AUDI A RABIA SS7E5 T HE STUDENT WILL ANALYZE DIFFERENT ECONOMIC SYSTEMS. A) C OMPARE AND CONTRAST THE ECONOMIC SYSTEMS OF I SRAEL, S AUDI A RABIA, AND T URKEY. Saudi Arabia E CONOMIC S YSTEM OF S AUDI A RABIA Mixed, but mostly command (emerging market ) - - Saudis can buy most goods cannot provide themselves (oil rich) - The king and his advisors make most of the decisions about how and where to use oil profits - - Profits invested in technologies and country improvement - - Private sector small, lack of development N ATURAL R ESOURCES Petroleum Dates Grains Livestock (harsh dry climate & terrain limits expansion of economy) M AIN S OURCE OF I NCOME Industry 64.8% - - Petroleum and Petroleum based goods Services 33.3% - - Defense, sales, & tourism Agriculture 1.9% - - Grains and Dates M AIN E XPORTS & I NDUSTRIES Industries: Industries: oil, rolled steel, petrochemicals, fertilizers, pipes, wires, etc Main Exports: Main Exports: petroleum and petroleum products Main Trade Partners: Main Trade Partners: U.S., Japan, South Korea, and China GDP GDP: GDP: $921.7 billion - -petroleum 45% of this Issues: Issues: High unemployment, inefficient state- owned industries, and economic swings I SRAEL SS7E5 T HE STUDENT WILL ANALYZE DIFFERENT ECONOMIC SYSTEMS. A) C OMPARE AND CONTRAST THE ECONOMIC SYSTEMS OF I SRAEL, S AUDI A RABIA, AND T URKEY. Israel E CONOMIC S YSTEM OF I SRAEL Mixed, but mostly market - Despite limited natural resources, Israelis have built an economy based on advanced technology - The private and governmental sectors all coexist in an economy that supports both the broad objectives of state policy and individual enterprise (highly trained/skilled workers and strong union support of workers) N ATURAL R ESOURCES Very limited natural resources!! Mineral resources (potash, bromine, & magnesium; copper ore) Citrus crops Industrial crops Dairy M AIN S OURCE OF I NCOME Agriculture: 2.5 % - Citrus & industrial cropsIndustry: 31.4% - - High technology, science based - Strong industrial sector : medical electronics, agro-technology, telecommunications, fine chemicals, and computer hardware/softwareServices: 66.1% - - Tourism and Finance M AIN E XPORTS AND I NDUSTRIES Main Exports: Main Exports: machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel Industries: Industries: high-technology products (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), metals products, & chemical products GDP $240.9 billion Mostly from Industries Biggest Trade Partners- European Union and U.S. Lack of access to Middle East trade and imports mostly raw materials