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 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,
 Most
economic activities are
relatively close to the natural
resources they use; ex.coal/steel, grain/cattle,
fishing/ocean, hydroelectric
power/aluminum smelting.
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 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.
Costs
1. Resource depletion
2. Environmental
destruction
3. Health problems
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.
◦The literacy rate, life
expectancy rate and
percentage of urban people is
high.
◦The infant mortality is low.

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 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).