Distribution of Resources

1
Distribution of Resources

• SOL WG.9b

2
Resource Distribution

• Countries do not have the same types and amounts
  of resources. Here are some examples
• Japan - A highly industrialized country despite
  its lack of natural resources.
• Russia - Many natural resources that are
  difficult to extract due to weather, distance,
  and lack of infrastructure.

3
Resource Distribution

1. United States - Abundant natural resources,
   diversified economy, and specialized industries.
2. Cote d Ivoire - Limited natural resources.
   Country must exchange cash crops for manufactured
   goods.
3. Switzerland - Limited natural resources but the
   country has a global service industry.

4
Russia
5
Cote dIvoire

• Cote dIvoire is the worlds largest producer of
  cocoa beans and a significant producer of coffee
  and palm oil. However, around 68 of the
  population works in agriculture. In comparison,
  about .6 of the labor force in the United States
  works in agriculture.

6
Switzerland

• Labor force by occupation in Switzerland
  agriculture 4.6, industry 26.3, services 69.1
• Switzerland has large banking and tourism
  industries

7
Effects of Unequal Distribution

• Since countries do not have all of the resources
  they need they usually specialize in goods and
  services that the country can market for a
  profit.
• Countries engage in exchange of goods and
  services. (sell what you can and buy what you
  cant produce)

8
Comparative Advantage

• Comparative advantage is when a country exports
  goods and services that they can produce at a
  lower relative cost than other countries.

9
Why do Countries Trade?

• To import goods and services that you need
• To export goods and services that you can market
  for a profit