Presentation on theme: "Resources and World Trade"— Presentation transcript:
1 Resources and World Trade Chapter 3 Section 3Resources and World Trade
2 Natural ResourcesAs we have already learned, people move and live in areas because of several factorsJobsWaterWeatherGood landNatural resources
3 Natural ResourcesNatural Resources – are products of the earth that people use to meet their needs.
4 Natural Resources Energy Food Products Wind Good Soil Granite Water FishIron OreOil
5 Renewable Resources Renewable Resources – cannot be used up Forests GrasslandsPlantsAnimalsSun
6 Nonrenewable Resources Nonrenewable Resources - limited in supply, and they cannot be replacedFossil Fuels – coal, oil, natural gasNuclear energy – power created by creating a controlled atomic reaction
7 Economic SystemsIf you think back to chapter 3 section 1, we have discussed the various types of economic systemsTraditionalCommandMarketMixed
8 Parts of Africa and South A Traditional EconomyCustoms and traditions determine what and how to produce. Resources are usually shared. Passed down from generation to generation.Bartering or exchanging is usedInuits – CanadaParts of Africa and South A
9 Command EconomyGovernment owns resources and controls production, prices, and wages.“Communism” refers to Command EconomiesChinaNorth KoreaFormer USSR
10 Market EconomyIndividuals 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 EconomyIndividuals own most resources and determine what and how to produceGovernment can regulate some industriesAlmost 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 TradeResources like people are not evenly distributed around the worldOne area of the world may have resources needed in other partsExample : chocolateExample : United StatesExample: BrazilWhy 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 themExport – 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 TradeGovernments try to manage tradeTariff – tax added to a price of goods that are importedExample: 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 TradeFree Trade – removing trade barriers so that goods flow freely among countries.NAFTA – North American Free Trade Agreement – United States, Canada, MexicoEU- European Union – many countries of Europe
16 Differences in Development Developed Countries – have a great deal of manufacturing (rich, Industrial countries)EuropeNorth AmericaDeveloping Countries – Usually grow only enough food to feed their families. (agricultural countries)South AmericaAsiaAfrica