Resources and World Trade Chapter 3 Section 3 Resources and World Trade

Natural Resources As we have already learned, people move and live in areas because of several factors Jobs Water Weather Good land Natural resources

Natural Resources Natural Resources – are products of the earth that people use to meet their needs.

Natural Resources Energy Food Products Wind Good Soil Granite Water Fish Iron Ore Oil

Renewable Resources Renewable Resources – cannot be used up Forests Grasslands Plants Animals Sun

Nonrenewable Resources Nonrenewable Resources - limited in supply, and they cannot be replaced Fossil Fuels – coal, oil, natural gas Nuclear energy – power created by creating a controlled atomic reaction

Economic Systems If you think back to chapter 3 section 1, we have discussed the various types of economic systems Traditional Command Market Mixed

Parts of Africa and South A Traditional Economy Customs and traditions determine what and how to produce. Resources are usually shared. Passed down from generation to generation. Bartering or exchanging is used Inuits – Canada Parts of Africa and South A

Command Economy Government owns resources and controls production, prices, and wages. “Communism” refers to Command Economies China North Korea Former USSR

Market Economy Individuals own resources and determine what and how to produce. Supply and Demand policy – prices and wages are set based on the producers supply, and the consumer demand. Also Known as consumer economics. United States

Mixed Economy Individuals own most resources and determine what and how to produce Government can regulate some industries Almost all nations have this form of economics including the United States. Example: In the United States, we have the government can walk into a business and check for sanitation. If the business does not pass the inspection, they have the right to close it down.

World Trade Resources like people are not evenly distributed around the world One area of the world may have resources needed in other parts Example : chocolate Example : United States Example: Brazil Why are each of these excellent examples? (use your book to help you)

World Trade Export – trading products to other countries (send out) Often, countries do not use all of the resources they produce. In that case, they Export them Export – trading products to other countries (send out) Import – buying products from other countries (bring in) Example: U.S. imports coffee from Brazil, while they export coal to Brazil.

Barriers to Trade Governments try to manage trade Tariff – tax added to a price of goods that are imported Example: If you want to buy a car from Germany, you will pay a tariff. American government will do this to keep you buying items within their own country. Quota – number limit on how many times a particular item can be imported into a country.

Free Trade Free Trade – removing trade barriers so that goods flow freely among countries. NAFTA – North American Free Trade Agreement – United States, Canada, Mexico EU- European Union – many countries of Europe

Differences in Development Developed Countries – have a great deal of manufacturing (rich, Industrial countries) Europe North America Developing Countries – Usually grow only enough food to feed their families. (agricultural countries) South America Asia Africa