Georgia Performance Standard: SS7E7 The student will describe factors that influence economic growth and examine their presence or absence in Israel, Saudi Arabia, and Iran.

1
E.Q. What factors influence economic growth in
Israel, Saudi Arabia, and Iran?

• Georgia Performance Standard SS7E7 The student
  will describe factors that influence economic
  growth and examine their presence or absence in
  Israel, Saudi Arabia, and Iran.

2
Gross Domestic Product (GDP)

• The total value of goods and services produced in
  a country in a year.

3
Investing in capital goods and human capital
increases a countries GDP.

• Capital goods

• Human capital

• Machines, factories, technologies, etc. used in
  production of goods and services

• Employers, the humans, that produce goods and
  services

4
How do you invest in Capital goods?

• Investing in capital goods means that you spend
  money for newer or better capital with the goal
  of making a bigger profit. EX. Building more
  factories, upgrading machines, buying new
  technology

5
How do you invest in human capital?

• Investing in human capital means that you spend
  money to train or educate your employers with the
  goal of making a greater profit.
• EX. Technology training, further personal
  education, etc.

6
Saudi Arabia And iran

• Some of the largest oil producers in the world
• Human Capital Investment turning out highly
  trained and well educated labor force
  particularly in the oil industry
• Capital Investment Spend on goods related to
  oil industry, communication, and technology
• Iran also invests a great deal on technology for
  its defense industry

7
Israel

• Depends on technology industries to make up for
  the countrys lack of natural resources
• Human Capital Investment Invests in training
  and technology related to medical field,
  agriculture technology, mining, and electronics
• Provides high level of training and education!
• Capital Investment Includes technology,
  industrial, communications, and defense industry

8
Entrepreneur someone who is willing to take a
risk to begin a new business with the hopes of
making a return on their investment

• These new businesses or products pump goods and
  services into the economy creating an increase in
  the countrys GDP