Professional Documents
Culture Documents
Growth
SW Asia Unit 3
Voluntary Trade
Factors involved in Voluntary Trade
1. Specialization
2. Trade Barriers
3. Currency Exchange
4. Control of Supply
Specialization
Define:
-specialization:
The products a country makes best and are
demand in the world market.
-interdependence:
A relationship between countries in which
they rely on one another for resources,
goods, or services.
Specialization
Organization of
Petroleum
Exporting
Countries
OPEC
Define
-supply:
The amount of a good or service available
for sale in a market.
-demand:
The amount of a good or service wanted in
a market.
OPEC
What is the primary function of OPEC?
Define:
-GDP:
Gross Domestic Product
The value of all goods and services
produced within a country in a given
year and converted into US dollars for
comparison.
Relationship between human capital and GDP
-human capital
The knowledge and skills that
make it possible for workers to
earn a living producing goods or
services.
Relationship between human capital and GDP
Example:
Relationship between capital goods
and GDP
Define:
-capital goods
The factories, machines, and technology
that people use to make products to
sell.
3 examples of capital goods:
- oil producing technology
- communications equipment
- assembly line machinery
Relationship between capital goods
and GDP
Companies that invest in capital goods
profitable
are more__________.
Define:
-entrepreneur
Creative, original thinkers who are willing
to take risks to create new
businesses and products.
Entrepreneurship
risk
An entrepreneur is willing to take a_____
profit
in order to make a________________.
Entrepreneurship
Think-Pair-Share
Example
Answer EQ’s
1. What factors encourage economic growth?
2. What factors encourage trade between countries?
3. What 3 examples of Capital Goods?
4. What are factors influencing Economic Growth?
5. How does specialization encourage trade
between countries?
6. What is the primary function of OPEC?
7. Go back look at Power point write yellow
highlighted definitions.