Resources and Their Importance

Just Do IT Think of one example of a renewable natural resource. Think of one example of a nonrenewable natural resource.

SOL and NCSS SOL WG. 7a-b NCSS: Production, Distribution, and Consumption

Objectives I CAN Distinguish between natural, capital, human, and energy resources and the levels of economic activity Evaluate the economic and environmental costs of energy resources

Big Question What are resources, and how does a country’s cultural and economic priorities determine how they are used?

The Need for Resources Humans need/use several different types of resources; Energy Water Food Others Can have good and bad consequences

Energy Resources and their GOOD SIDE  Wood-generates heat used for cooking & electricity Coal- generates a large portion of U.S. electricity. Petroleum- gasoline, diesel fuel, and heating Nuclear- more environmentally friendly Solar & Wind- FREE, GREAT for environment

Energy Resources and their Bad Side Wood –causes deforestation Coal – but this causes pollution Petroleum – also causes pollution Nuclear – dangerous could contaminate environments and kill peple Solar and Wind – expensive and ugly

Natural Resources Renewable: Soil, water, forests Nonrenewable: Fossil fuels (oil, coal, natural gas) and metals (gold, iron, copper, bauxite)

What About Other Types of Resources? Human Resources Education workforce Skilled v. Unskilled Workers Entrepreneurial and managerial abilities Capital Resources $$ for investment Infrastructure Availability of tools, machines, and technology.

Distribution of Resources When resources are unevenly distributed, effects can be felt throughout the world. Effects of Unequal Distribution of Natural resources Interdependence – relying on other countries for certain goods/services Imperialism – taking control of other areas to gain control of resources Conflict and civil wars Unbalanced economies

Examples of Effects of Unequal Distribution Switzerland – limited resources; produce services on global scale Russia – many different resources; not profitable to develop all of them Cote d’Ivoire (Ivory Coast) – limited resources; trades cash crops for goods

Resources and Trading Comparative Advantage = exporting goods that can be produced at a lower cost that other countries. Nations must trade in order to obtain all needed resources/goods. Also encourages interdependence – nations relying on each other.

Why Trade? Allows specialization in goods a country CAN produce and… Allows country to obtain goods it CANNOT produce Encourages specialization

What About Economic Unions? Disadvantages Closing some industries Large agribusiness v. family farms Disagreement on economic laws Advantages Efficient industry Larger markets Access to many resources Worldwide influence

Pros and Cons of Resource Development Production of goods Employment Developing technology Cons Resource depletion Environmental destruction Health concerns

What If a Country Isn’t Near Resources? Must make do with what a country has. Example: Japan – limited natural resource, so it’s highly industrialized. UAE – solely depends on oil, has limited industry.

Cultural Perspectives and Resources Different cultures value resources differently. Can also depend on technology and government. Each culture has their own set of priorities when it comes to resources Economic development Environmental conservation Human minority protection

Technology and Resources Some new technologies have created a higher demand for certain resources Steam engine – higher demand for coal Auto engine – higher demand for gas (oil) Computer chips – higher demand for skilled, educated labor

Land Use Some economic activities, like agriculture, require extensive areas of land Others require limited areas (e.g., manufacturing) Some land uses are compatible with each other: open spaces and residential or retail and residential Other land uses are not compatible (e.g., landfills and residential)

Levels of Economic Activity Primary: Dealing directly with resources (e.g., fishing, farming, forestry, mining) Secondary: Manufacturing and processing (e.g., steel mills, automobile assembly, sawmills) Tertiary: Services (e.g., transportation, retail trade, information technology services)

Your Assignment: Shark Tank You will work with a group of 3-4 to create a business. It can be primary, secondary, or tertiary economic activity. 1. Determine what kind of business you would like to start 2. Determine what you need and list everything on your business plan. (Follow packet and read directions!) 3. As you are choosing your resources, try to find a balance between cost and environmental impact according to your group’s priorities. 4. Create a colorful picture/ diagram about your new business that you would show to potential “investors.” We will present these and the best business (based on class votes) will earn extra credit points.

Exit Slip How has the value of certain resources changed over time? Answer on your own paper.