Resources #2

SOL WG 9a, b, c

Resources

A. Resources are not equally distributed

B. No country has all of the resources it needs to survive and grow

C. Nations participate in those economic activities compatible with their human, natural, and capital resources

D. Economic activities are influenced by availability of resources, cultural values, economic philosophies, and levels of supply and demand for goods and services.

Use of Resources

A. Japan: Highly industrialized nation despite limited natural resources

B. Russia: Numerous resources, many of which are not economically profitable to develop

C. United States: Diversified economy, abundant natural resources

D. Cote d’Ivoire: Limited natural resources, cash crops exchanged for manufactured goods

E. Switzerland: Limited natural resources, production of services on a global scale

Japan has limited natural resources. It lacks coal, iron ore, and oil. However, it is highly industrialized and wealthy.

Russia has many natural resources but the cold climate and long distances make it difficult to extract the resources for a profit.

The U.S. has many natural resources and a diversified economy.

Cote d’ Ivoire in West Africa has limited resources and must exchange cash crops for manufactured goods.

Switzerland does not have many natural resources. The economy is based on the service industry such as banking.

Why do countries trade?

A. To import goods and services that they need

B. To export goods and services that they can market for a profit

Factors that Influence

Economic Activity

A. Access to human, natural, and capital resources, such as:

A. Skills of the work force

B. Natural resourcesC. New technologiesD. Transportation and

communication networks

E. Investment capital

B. Location and ability to exchange goods

A. Landlocked countriesB. Coastal and island

countriesC. Proximity to shipping

lanesD. Access to

communication networks

C. Membership in economic alliances

Unequal Distribution of Resources

A. Comparative advantageo The ability of

countries to produce goods and services at lower relative costs than other countries, resulting in exports of goods and services

A. Specialization of goods and services that a country can market for a profit

B. Exchange of goods and services

Economic Changes Over Time

A. Cottage industries were replaced by factories and offices

B. People are moving from rural areas to urban areas

C. Trade alliances are growing in the world

D. Service industries are growing in the world

E. Financial services are growing

F. Internationalization of product assembly

G. Technology that allows instant communication

H. Modern transportation networks (Federal Express, UPS, U.S. Postal Service)

I. Widespread marketing of products (Fuji film, Nike, United Colors of Benetton)