Resources

1. Resources

2. Natural Resources • Renewable resources will replace themselves over time. Examples--soil, water, and forests

3. Nonrenewable Resources • Nonrenewable resources are resources that will not replace themselves. Once they are used, they are gone. Examples--fossil fuels (oil, coal, natural gas), and metals (gold, iron, copper, and bauxite)

4. Human Resources • Human resources are man and his mind. Human resources depend on level of education, whether it is skilled or unskilled labor, and if entrepreneurial or managerial abilities are needed.

5. Capital Resources • Capital resources are resources that can be used to make more, like money or tools. Features of capital are the availability of money for lending, the level of infrastructure, and the availability and use of tools, machines, and technologies.

6. Patterns of land use • Most economic activities are relatively close to the natural resources they use; ex.-coal/steel, grain/cattle, fishing/ocean, hydroelectric power/aluminum smelting. HEI

7. Patterns of land use cont. • Not all nations are close to the resources they use. Ex-Japan has limited natural resources, but they are a major industrial power and the United Arab Emirates (UAE) has lots of oil, but no major industries.

8. Costs and benefits from using natural resources Costs 1. Resource depletion 2. Environmental destruction 3. Health problems

9. Costs and benefits from using natural resources Benefits 1. Helps us produce goods and services 2. Creates employment opportunities 3. Helps develop new technologies

10. The effects of unequal distribution of resources • Because resources are distributed unequally around the world, it causes several things to happen: 1. Interdependence of nations -- they must trade with each other to acquire the goods they do not possess.

11. The effects of unequal distribution of resources cont. 2. Uneven economic development (rich and poor countries) 3. Energy producers and consumers 4. Imperialism (one country dominating another) 5. Conflicts over control of resources

12. Differences between developing and developed nations • Developed nations have better access to natural and capital resources. • Developed nations have more investment in technology and have created a better infrastructure.

13. What are the indicators of economic development • Is the country more urban or more rural? Developed nations are generally urban. • At what labor level do most people work? Most people in developed nations work in secondary and tertiary areas.

14. What are the indicators of economic development cont. • Is the Gross Domestic Product for the nation high or low? Most developed nations have a high GDP. • What is the level of the educational achievement? Most developed nations have a highly educated population.

15. Indicators of standard of living and quality of life • A nation has a high standard of living and a high quality of life if… • the population growth rate is low. • the population age distribution is even.

17. High Standard of Living • The literacy rate, life expectancy rate and percentage of urban people is high. • The infant mortality is low.

19. http://www.worldmapper.org/animations/income_animation.html

20. Why do countries trade? • To import goods and services they need • To export goods and services they can sell for profit

21. What influences economic activity? • A country’s access to human, natural and capital resources. • Do they have a skilled workforce? • Do they have natural resources? • Are their transportation and communication networks modern, outdated or nonexistent? • Do they have access to new technology?

22. What influences economic activity? cont. • A country’s location and ability to exchange goods. • Are they landlocked? • Are they an island or coastal nation? • How close are they to shipping lanes? • What is their access to communications?

23. What is comparative advantage? • Comparative advantage means a country will export goods and services that they can produce at lower relative costs than other countries.

24. What are the effects of comparative advantage? • Enables nations to produce goods and services they can sell for profit • Influences the development of industries (ex. steel, aircraft, automobile, clothing) • Supports specialization and efficient use of human resources

25. Examples of countries and their use of resources • Japan--highly industrialized despite limited natural resources • Russia--has numerous resources but many are not economically profitable to actually develop

26. Examples of countries and their use of resources cont. • United States--diversified economy , specialized industry, abundant resources • Cote d’Ivorie--limited natural resources, but they use cash crops to buy manufactured goods

27. What are the effects of unequal distribution of resources? • Unequal distribution of resources causes countries to specialize in the goods and services they produce. It also encourages countries to trade with one another for the goods they can not produce themselves. It allows some to make a profit.

28. How has economic interaction changed over time? • Labor has moved from individual homes (cottage industry) to factories to offices to telecommunications. • There has been a large migration from rural to urban areas. Movement

29. How has economic interaction changed over time? cont. • Industrialized countries now export labor intensive work to developing nations. • Trade alliances have grown in number. • Service industries (tertiary) have grown in number.

30. How has economic interaction changed over time? cont. • Financial service networks and international banks have increased. • Products have become internationally assembled instead of everything being made in one location. (ex. vehicles, electronics)

31. How has economic interaction changed over time? cont. • Modern transportation networks that allow for rapid and efficient exchange of goods and services (ex. Federal Express, UPS, U.S. Postal Service) have grown. • Widespread marketing of products has increased (ex. Fuji, Nike, etc).