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Middle Eastern Economies

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15 diapositives · 307 Views · Aug 29, 2014

Middle Eastern Economies. Economic Systems. Pure Command. Pure Market. Israel (1) What to produce? A large portion of Israel’s GDP comes from high tech manufacturing, financial services, and agriculture. (2) How to produce?

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Middle Eastern Economies
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  1. Middle Eastern Economies

  2. Economic Systems Pure Command Pure Market

  3. Israel (1) What to produce? A large portion of Israel’s GDP comes from high tech manufacturing, financial services, and agriculture.

  4. (2) How to produce? Israel has substantial government ownership of business, but is gradually privatizing companies.

  5. (3) For whom to produce? The private sector produces goods and services for domestic and international markets based on the market price system.

  6. Israel 68% Economic Systems Place on the continuum: Israel would fall in the middle of the market side on the continuum. 0 100 Pure Market Pure Command

  7. Saudi Arabia (1) What to produce? Saudi Arabia is the world’s leading producer of oil. The Saudi government continues to invest in industrial production. They are a leader in petrochemicals, mining, and refining.

  8. Saudi Arabia(2) How to produce? • Over 95% of the oil industry in the country is operated by the government. Most other major industries have significant government involvement. • Saudi Arabia relies heavily on specialized labor from other countries. Estimates are that a third of the labor force falls in this category. • Since the 1980s, the Saudi government has been trying to increase private ownership of business and encourage more joint ventures with private foreign companies.

  9. Saudi Arabia 3) For whom to produce? • One third of Saudi Arabia’s GDP is based on exports to other countries. (This is due to the economy’s reliance on the oil sector.)

  10. Economic Systems Saudi Arabia 64% Place on the continuum: Saudi Arabia would fall to the left of Israel on the continuum. 0 100 Pure Market Pure Command

  11. Turkey (1) What to produce? Turkey has a diversified economy with large service, manufacturing, and agricultural sectors.

  12. (2) How to produce? Since the late 1980s, Turkey has gradually moved from a government directed economy to more private enterprise.

  13. (3) For whom to produce? One fifth of Turkey’s production is exported. The remainder is consumed by domestic consumers and the government.

  14. Economic Systems Turkey 62% Place on the continuum: Turkey would fall to the left of Saudi Arabia and Israel on the market side of the continuum. 0 100 Pure Market Pure Command

  15. Economic Systems 0 100 Pure Command Pure Market Turkey 62% Saudi Arabia 64% Israel 68%