Economic Standards
Southwest Asia trade
SS7E6 The student will explain how voluntary trade benefits buyers and sellers in
Southwest Asia (Middle East).
a. Explain how specialization encourages trade between countries.
b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and
embargos.
c. Explain the primary function of the Organization of Petroleum Exporting Countries
(OPEC).
d. Explain why international trade requires a system for exchanging currencies between
nations.
Southwest Asia (Middle East).
a. Explain how specialization encourages trade between countries.
b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and
embargos.
c. Explain the primary function of the Organization of Petroleum Exporting Countries
(OPEC).
d. Explain why international trade requires a system for exchanging currencies between
nations.
![Picture](/uploads/3/8/9/9/38993815/5259949.jpg?367)
There are 3 types of trade barriers, a quota, tariff, and embargo. A quota puts a limit on an item being exported or imported. A tariff is a tax on imported goods. A embargo is a restriction of trade on a country, usually to get a country to change their ways.
![Picture](/uploads/3/8/9/9/38993815/790896977.jpg?330)
OPEC is a Middle East based organization that has many Southwest Asia countries in it. The countries that are in it all produce large amounts of oil. OPEC's main responsibility is to determine the price of gas.
![Picture](/uploads/3/8/9/9/38993815/844526053.jpg?332)
Currency exchange is very important to trading. For example, if Iraq wants to trade with Saudi Arabia, they will need to exchange currencies with each other.