Renewable resources will replace themselves over time. Examples--soil, water, and forests
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)
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.
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.
Most economic activities are relatively close to the natural resources they use; ex.- coal/steel, grain/cattle, fishing/ocean, hydroelectric power/aluminum smelting. HEI
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.
Benefits 1. Helps us produce goods and services 2. Creates employment opportunities 3. Helps develop new technologies
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.
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
Developed nations have better access to natural and capital resources. Developed nations have more investment in technology and have created a better infrastructure.
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.
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.
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.
To import goods and services they need To export goods and services they can sell for profit
A country’s access to human, natural and capital resources. 1.Do they have a skilled workforce? 2.Do they have natural resources? 3.Are their transportation and communication networks modern, outdated or nonexistent? 4.Do they have access to new technology?
A country’s location and ability to exchange goods. 1.Are they landlocked? 2.Are they an island or coastal nation? 3.How close are they to shipping lanes? 4.What is their access to communications?
Comparative advantage means a country will export goods and services that they can produce at lower relative costs than other countries.
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
Japan--highly industrialized despite limited natural resources Russia--has numerous resources but many are not economically profitable to actually develop
United States--diversified economy, specialized industry, abundant resources Cote d’Ivorie--limited natural resources, but they use cash crops to buy manufactured goods
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.
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
Industrialized countries now export labor intensive work to developing nations. Trade alliances have grown in number. Service industries (tertiary) have grown in number.
Financial service networks and international banks have increased. Products have become internationally assembled instead of everything being made in one location. (ex. vehicles, electronics)
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).