Download MIXED ECONOMIES OF ISRAEL, SAUDI ARABIA, AND TURKEY

Name ____________________________
ECONOMIES OF
ISRAEL, SAUDI ARABIA, & TURKEY
STEP 1
DIRECTIONS: Read how each country answers the 3 basic economic questions – what, how, and for whom to produce.
Underline characteristics of command economies in one color and market economies in another color. Use your coloring to
decide where each country belongs on the economic continuum (see next page).
What to produce?
How to produce?
For whom to produce?
A large amount of Israel’s GDP comes
from cut diamonds, high-tech
equipment, financial services (ex.
banking), and agriculture (farming).
While many of the businesses in Israel are
owned by the government, but private
companies are taking control.
The private sector (nongovernment owned companies)
produces goods and services for
Israeli and international markets
based on the market price system.
SAUDI
ARABIA
Saudi Arabia is the world’s leading
producer of oil. The Saudi government
continues to invest in industrial
production (ex. mining and oil
production). They are a leader in
petroleum chemicals, mining, and
refining.
 Over 95% of Saudi Arabia’s oil industry in the
country is operated by the government.
 Most other major industries (businesses)
have significant government involvement.
 Saudi Arabia relies heavily on labor (workers)
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 projects
with private foreign companies.
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.)
TURKEY
Turkey has a wide-ranging economy
with a large service sector (ex.
construction), manufacturing sector (ex.
clothing, steel, electronics, paper), and
agricultural sector (ex. tobacco, cotton,
olives).
Since the late 1980s, Turkey has gradually
moved from a government managed
economy to more private (non-government
owned) businesses.
One fifth of Turkey’s production is
exported. The rest is consumed by
Turkish consumers and the
government.
ISRAEL