1. Resources and World Trade
Chapter 3 Section 3
Resources and World Trade

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

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

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

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

6. 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

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

8. 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

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

10. 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

11. 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.

12. 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)

13. 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.

14. 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.

15. 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

16. 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