Resources

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Resources
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Natural Resources

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

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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)

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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.

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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.

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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

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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.

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Costs and benefits from using natural resources

• Costs
• 1. Resource depletion
• 2. Environmental destruction
• 3. Health problems

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Costs and benefits from using natural resources

• Benefits
• 1. Helps us produce goods and services
• 2. Creates employment opportunities
• 3. Helps develop new technologies

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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.

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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

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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.

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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.

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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.

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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.

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High Standard of Living

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

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• http//www.worldmapper.org/animations/income_anima
  tion.html

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Why do countries trade?

• To import goods and services they need
• To export goods and services they can sell for
  profit

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What influences economic activity?

• A countrys 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?

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What influences economic activity? cont.

• A countrys 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?

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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.

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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

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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

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Examples of countries and their use of resources
cont.

• United States--diversified economy , specialized
  industry, abundant resources
• Cote dIvorie--limited natural resources, but
  they use cash crops to buy manufactured goods

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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.

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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

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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.

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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)

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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).

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