Global Resource Distribution and Economic Activities

1. Resources and Land Use

2. Section 1 World Resources

3. A resource is something of value.

4. Early people used the resources that they had…trees, water, rocks, plants. People today are just as dependent on the resources they have…trees, water, rocks, plants. Most important resource - the sun is expected to last 5 billion years or more.

5. Kinds of Resources • Capital resources – money and machines used to produce goods or services • Human resources – the people who perform various tasks • Natural resources - materials that people take from the natural environment to survive and to satisfy their needs.

6. Renewable Resources Environment continues to supply or replace them • Water cycle • Plants, soil • Sun – although not renewable – will last awhile • Natural growth takes time • Humans can interfere with the time it takes to replace resources

7. Nonrenewable Resources • Cannot be replaced once they have been used • Limited supply/millions of years to replace • Fossil fuels – coal, oil, natural gas • Minerals – copper, uranium, gold • Recycling is important but limiting consumption is needed

8. Energy Sources

9. Fossil Fuels • Fossil fuel dependence by industrialized nations • Supplies of oil, natural gas unevenly spread in world so most need to import • At present use, supplies will end in less than a century • Southwest Asia contains most of oil reserves • Northern Eurasia has most natural gas reserves

10. Coal • Coal deposits • Larger and more widely distributed • Large deposits found in US, China, Russia • World’s reserves last 200 yrs • Burning coal creates air pollution such as acid rain

11. Nuclear Energy • Nuclear Energy • Produced by fission – splitting of uranium atoms in a nuclear reactor to release their stored energy • Uses uranium – which is non-renewable • Concerns – nuclear leaks, disposal of nuclear waste, nuclear explosions

12. Other Energy Sources • Water power – hydroelectric • use of falling water to move machinery or generate electricity • New dams need to be built – considered renewable • Wind power • Ocean tides • Geothermal energy - use magma heat produces steam/electricity (Iceland, Japan, New Zealand, US) • Solar energy – potentially the greatest renewable source

13. Distribution of Resources • Not evenly distributed so that affects: • where people live • what sorts of economic activities they pursue • what trade networks are needed • Japan – rely on imports • Saudi Arabia - rely on exports • Global economy is reliant on supply of natural resources

14. World Economic Activity

15. Section 2 World Economic Activity

16. How do economies affect how/where countries develop? Technology and resource distribution affects economic activities affects trade patterns affects levels of development

17. Economic Activities

18. Four Categories • Primary • Secondary • Tertiary • Quarternary

19. Primary Economic Activities

20. Primary Economic Activities • Rely directly on natural resources • Fishing, forestry, mining • Hunting, gathering, and herding • Ancient primary activities • Based on environmental knowledge • Passed down from generation to generation

21. Primary Economic Activities • Farming • Most important basic economy • Developing nations • 50% farming • Advanced nations • Less than 10% farming

22. Variety of agricultural/farming methods • Subsistence farming • Developing countries • Grow enough for family’s needs • Have a good harvest, may sell or trade excess • Tools and techniques are very basic • Rely on animals or human power

23. Variety of agricultural/farming methods • Commercial farming • Advanced economies • Crop is entirely sold at market • Modern equipment and techniques • Small labor force needed to produce crops • Some plantations in 3rd world countries • Geographic and economic factors influence the location of commercial farms – cheap land

24. Secondary Economic Activities

25. Secondary Activities • People use raw materials to produce or manufacture new products of greater value • Processing wheat into flour • Milling lumber • Producing electricity

26. Secondary Activities • Cottage Industries • Subsistence economies • Made in homes • Small in size • Made by hand

27. Secondary Activities • Commercial industries • Turn out large quantities of goods • Automobiles, appliances, heavy machinery • Factories are built near raw materials • Need to be able to ship finished goods • Need skilled workers, access to energy and transportation

28. Tertiary Activities

29. Tertiary Activities • Service industries • Do not need raw materials • Pursue activities that serve others • Lawyers, doctors, cab drivers, firefighters • Located where services are required

30. Quarternary Activities

31. Quarternary Activities • Modern economies • Focus on the acquisition, processing and sharing of information • Education, research, government, information processing • Can be located anywhere but are usually concentrated around highly educated people • Internet is important

32. Global Trade Patterns

33. Basics of trade • Nations who do not have natural resources establish a trading network • Goods sent out of a country – exports • Goods brought into a country - imports

34. Trade Balance • Governments seek balance • between exports and imports • Too many foreign goods (imports) • cause lost profits • local businesses to fail • Increases a country’s debt • Limit imports • impose taxes (tariffs) on imported goods • Products cost more/encourage buy local goods

35. Trade Routes • Trade routes determined by • geography • transportation technology • international relations • History of trade • Ancient spice trade • Ancient trade of Greek and Roman empires • Today - world trade • relies on computers, shipping, airlines

36. Level of Development

37. Level of development • Economic activities and trade patterns • GDP – gross domestic product – total value of goods and services produced in a year divided by its total population

38. Developed Country • High GDP • High standard of living • High level of education • High level of health care • Better transportation, communication • People generally consume more food and live longer • US, France, Germany, Japan

39. Developing Country • Third World countries • Lack adequate industries, modern technology • Depend on developed nations for manufactured goods • Government instability • Low standard of living • Poor education, health care • Nigeria, El Salvador, Ecuador, Vietnam

40. Great disparity among nations • Wealthy nations invest money to help poorer countries build their economies • UN works to help stabilize countries by providing health care • Ideas are exchanged to promote political economic and social change

41. Developed Nations Technology is high Industry Per capita GNP- high Less dependent on other countries Developing Nations Technology is lower Less industry More agriculture Per capita GNP- low Dependent on other countries for support and financial aid Often third world Economic Activities