Voluntary Trade
What is voluntary trade?
The exchange of goods and services between countries.
What does specialization mean?
Countries focus on producing goods they are best at making.
What are trade barriers?
Obstacles that make trade more difficult.
What does OPEC stand for?
Organization of Petroleum Exporting Countries.
What type of government does Israel have?
Parliamentary democracy.
Name one benefit of voluntary trade.
Countries can sell resources they have or buy resources they lack.
Name one country in Southwest Asia that specializes in oil production.
Saudi Arabia.
Name one type of natural trade barrier.
Mountains or Deserts.
Name two founding members of OPEC.
Iran, Iraq, Kuwait, Saudi Arabia, or Venezuela
Who is the head of state in Turkey? (What do they call the position of leader?)
The president
SW Asian Country that specializes in Oil Production.
Saudi Arabia
What does Israel specialize in?
High-technology products such as aviation, communications, and medical electronics.
What is a tariff?
A tax on imports.
What is the purpose of OPEC?
To regulate oil prices and ensure a stable world oil market.
A government where the king holds complete power.
An absolute Monarchy
Why do countries participate in Voluntary Trade?
No country has all the resources necessary to produce everything.
Which country specializes in machinery and transport equipment?
Turkey
What is an Embargo?
A ban on trade
How many countries are currently members of OPEC?
13 countries
In which country do citizens vote for members of the Knesset?
Israel.
________ and ________ determine what is bought, made, sold, and traded in a Market Economy?
Supply and Demand
What are the benefits of specialization?
It leads to more efficient production and lower costs for items produced.
How do political trade barriers affect trade between countries?
Government policies, such as taxes or import limits, can restrict trade.
What year was OPEC founded?
1960
Describe the role of the citizen in Saudi Arabia's government.
Citizens have very little opportunity to participate and mostly do not choose the king, as it is a hereditary position.