2Renewable resources will replace themselves over time. Natural ResourcesRenewable resources will replace themselves over time.Examples would be soil, water, and forests
3Nonrenewable resources are resources that will not replace themselves 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)
4Human resources are man and his mind Human resources depend on level of education, whether it is skilled or unskilled labor, and are entrepreneurial or managerial abilities needed.
5Capital ResourcesCapital resources are resources that can be used to make more, like money or toolskey features of capital are the availability of money for lending, the level of infrastructure, the availability and use of tools, machines, and technologies
6Three levels of economic activity Primary Activities--dealing directly with natural resources (ex.--fishing, farming, mining, and forestry)Secondary Activities--are manufacturing and processing of natural resources (ex.--steel mills, automobile assembly, sawmills
7Tertiary Activities--are service industries (ex Tertiary Activities--are service industries (ex.--transportation, retail trade, informational technology services)
8Energy resources and technology as it has changed over time Wood--deforestationcoal--pollution, mining problems, competition with oil and gasPetroleum--transportation, environmental considerations
9Energy resources and technology as it has changed over time cont. Nuclear--contamination, wastesolar or wind--cost, aesthetics
10Patterns of land useMost economic activities are relatively close to the natural resources they use; ex.-coal/steel, grain/cattle, fishing/ocean, hydroelectric power/aluminum smelting
11Patterns 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) have lots of oil, but no major industries
12Examples of technology creating demand Some new technologies have created a demand for a particular natural resource--steam engine and coal, internal combustion engine and gas, computer chips and skilled labor
13Costs and benefits from using natural resources 1. Resource depletion.2. Environmental destruction3. Health problems
14Costs and benefits from using natural resources 1. Helps us produce goods and services.2. It creates employment opportunities3. It helps develop new technologies
15The effects of unequal distribution of resources Because resources are distributed unequally around the world, it causes several things to happen1. Interdependence of nations -- they must trade with each other to acquire the goods they do not possess
16The effects of unequal distribution of resources cont. 2. Uneven economic development (rich and poor countries)3. Energy producers and consumers4. Imperialism (one country dominating another)5. conflicts over control of resources
17Differences between developing and developed nations Developed nations have better access to natural and capital resourcesDeveloped nations have more investment in technology and have created a better infrastructure
18Differences between developing and developed nations cont. Developed nations have more skilled laborDeveloped nations have a higher level of economic developmentDeveloped nations have a higher standard of living and a higher quality of life
19What 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.
20What 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
21Indicators 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 lowthe population age distribution is even
22The literacy rate, life expectancy rate and percentage of urban people is high the infant mortality is low
23To import goods and services they need Why do countries trade?To import goods and services they needto export goods and services they can sell for profit
24What 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?
25What 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
26What influences economic activity? cont. They are members of a political or economic alliance that provides access to markets.Examples would be, the European Union (EU), North American Free Trade Agreement(NAFTA)
27What is comparative advantage? Comparative advantage means a country will export goods and services that they can produce at lower relative costs than other countries.
28What are the effects of comparative advantage? Enables nations to produce goods and services they can sell for profitinfluences the development of industries (ex. steel, aircraft, automobile, clothing)supports specialization and efficient use of human resources
29Examples of countries and their use of resources Japan--highly industrialized despite limited natural resourcesRussia--has numerous resources but many are not economically profitable to actually develop
30Examples of countries and their use of resources cont. United States--diversified economy , specialized industry, abundant resourcesCote d’Ivorie--limited natural resources, but they use cash crops to buy manufactured goods
31Examples of countries and their use of resources cont. Switzerland--has limited natural resources, but produces goods on a global scale
32What 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
33How has economic interaction changed over time? Labor has moved from individual homes (cottage industry) to factories to offices to telecommunicationsthere has been a large migration from rural to urban areas
34How has economic interaction changed over time? cont. Industrialized countries now export labor intensive work to developing nationstrade alliances have grown in numberservice industries (tertiary) have grown in number
35How has economic interaction changed over time? cont. Financial service networks and international banks have increasedproducts have become internationally assembled instead of everything being made in one location. (ex. Vehicles, electronics)
36How 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, US Postal Service) have grownWidespread marketing of products has increased (ex. Fuji, Nike, etc)
37Examples of Economic Unions EU--European UnionNAFTA--North American Free Trade AgreementOPEC--Organization of Petroleum Exporting CountriesASEAN--Association of Southeast Asian Nations
38Advantages of Economic Unions They allow for more efficient industriesThey have access to larger marketsThey have access to more human, natural, and capital resources without restrictionsThey have a greater influence on world markets
39Disadvantages to economic unions They cause some industries to closeCertain industries become concentrated in particular countries while forgetting the smaller ones.Agribusiness is replacing the family farm.There is often difficulty in agreeing on common economic policies.