Key Terms
What does OPEC stand for?
Organization of the Petroleum Exporting Countries
What economic system has private ownership and little government involvement?
A mixed economy
What is OPEC's main goal?
To control oil production and prices
What is a trade barrier?
Anything that limits trade between countries
How does specialization benefit countries in SW Asia?
It allows countries to produce different goods and services well which can help them with trading for what they did not produce
An economic system where the citizens vote for members of Parliament who then pick a legislature who is usually a prime minister
What is a parliamentary democracy?
The economic system that is most popular in SW Asia today
What is a mixed economy?
Why is oil so important to SW Asia economies?
It provides major income and jobs
What is a tariff?
A tax on imported goods
What is it called when a country focuses on producing one or a few types of goods and services well?
Specialization
What is a presidential democracy?
A system where the citizens directly vote for the president who is head of government and head of state
What economic system has the government owning most resources?
A command economy
What two SW Asia countries are founding members of OPEC?
Saudi Arabia and Venezuela
What is a negative effect of trade barriers?
Higher prices for consumers
What does specialization allow countries to do with other goods they don't produce?
Trade for them
What economic concept involves countries producing many different goods efficiently and trading to get other needed goods?
Specialization and trade
What government does Turkey have?
A presidential democracy
How does OPEC influence global oil prices?
By increasing or decreasing oil production
How can trade barriers affect SW Asia economies?
They can limit trade income and economic growth
What can happen if countries specialize and trade with each other?
Both countries can get more goods than if they tried to make everything themselves
What economic system combines private ownership with government involvement in key industries?
What is a mixed economy?
Why do most SW Asia governments use mixed economies?
To combine the efficiency of private business ownership with necessary government involvement
Why might OPEC member countries agree to limit oil production even though it reduces the amount of oil they sell?
Limiting production can raise global oil prices, allowing countries to make more money for smaller amounts of oil and maintain economic and political influence
What is a government-imposed ban on all trade with a specific country, usually for a political reason?
An embargo
How can a country's reliance on exporting a single specialized product make it vulnerable to global trade?
If global demands or prices for that product drop, the country's economy can suffer because it doesn't have other strong exports to rely on