Economic analysis can also improve one's understanding of international political issues.
There has been political unrest in the Middle East for several decades but there has been recent progress towards an overall peace settlement. Economics can predict, and sometimes offer solutions to, the problems in agreeing to the terms for peace. Analyzing the distribution of natural resources in the area shows that fresh water is scarce. Bluntly put, power lies in the control over water. The source of the Jordan River, which runs into Israel, lies in Syria.