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How do resources affect human activity?. Scarcity. As humans, we have unlimited wants . A society can only produce a limited number of things with the resources available.
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Scarcity As humans, we have unlimited wants. A society can only produce a limited number of things with the resources available. Therefore, scarcity says that we cannot be self sufficient. We have to rely on others for resources our society doesn’t have.
Trade • The exchange of goods and services • What causes trade? • Uneven distribution of resources • Specialization
Uneven Distribution of Resources • Various parts of the world have different climates, landforms, soils, and minerals • Petroleum • World Oil Production • Top 20 Oil Producers = 95% • Rest of the World (237 Countries) = 5% • Human Resources • China • Larger numbers of people willing to work for less money • More Developed Countries • Strong educational backgrounds • Design new high-tech goods • Act as entrepreneurs
Specialization • Specialization occurs when a region tends to make a certain type of goods based on the resources it has available. • How does specialization encourage trade? • Because of specialization, not every country produces what it needs and wants. • The exchange of goods through imports and exports is called trade • Japan
Globalization • Offshoring • Companies moving their production facilities to places with lower cost of production and labor • Outsourcing • Allows companies to focus on business decisions, while it allows management companies to handle things such as customer service • Globalization • The process of goods and services being exchanged on a global scale
Globalization • Benefits • People enjoy goods and services from around the world • Greater connectivity (easier communication) • Advances in technology, medicine, etc. spread quickly • Eco. development has sped up
Globalization • Costs • Manufacturing has shifted away from areas with high labor costs • Workers in more developed countries have lost their jobs • Workers in less developed countries are being exploited (long hours in harsh conditions) • Increased pollution and climate change • Higher risk of pandemics • Loss of individual economy and local uniqueness • Spread of American “pop” culture – backlash • Trade imbalances • China vs. America