Transcript Early people used the resources that they had…trees, water

Early people used the resources that they
had…trees, water, rocks, plants.
People today are just as dependent on the
resources they have…trees, water, rocks,
plants.
Most important resource - the sun is
expected to last 5 billion years or more.
Kinds of Resources
• Capital resources – money and machines
used to produce goods or services
• Human resources – the people who
perform various tasks
• Natural resources - materials that people
take from the natural environment to
survive and to satisfy their needs.
Renewable Resources
Environment continues to supply or replace them
• Water cycle
• Plants, soil
• Sun – although not renewable – will last awhile
• Natural growth takes time
• Humans can interfere with the time it takes to
replace resources
Nonrenewable Resources
• Cannot be replaced once they have been used
• Limited supply/millions of years to
replace
• Fossil fuels – coal, oil, natural gas
• Minerals – copper, uranium, gold
• Recycling is important but limiting
consumption is needed
Fossil Fuels
• Fossil fuel dependence by industrialized nations
• Supplies of oil, natural gas unevenly spread in
world so most need to import
• At present use, supplies will end in less than a
century
• Southwest Asia contains most of oil reserves
• Northern Eurasia has most natural gas reserves
Coal
• Coal deposits
• Larger and more widely distributed
• Large deposits found in US, China, Russia
• World’s reserves last 200 yrs
• Burning coal creates air pollution such as
acid rain
Nuclear Energy
• Nuclear Energy
• Produced by fission – splitting of
uranium atoms in a nuclear reactor to
release their stored energy
• Uses uranium – which is non-renewable
• Concerns – nuclear leaks, disposal of
nuclear waste, nuclear explosions
Other Energy Sources
• Water power – hydroelectric
– use of falling water to move machinery or generate
electricity
– New dams need to be built – considered renewable
• Wind power
• Ocean tides
• Geothermal energy - use magma heat produces
steam/electricity (Iceland, Japan, New Zealand, US)
• Solar energy – potentially the greatest renewable
source
Distribution of Resources
• Not evenly distributed so that affects:
– where people live
– what sorts of economic activities they pursue
– what trade networks are needed
• Japan – rely on imports
• Saudi Arabia - rely on exports
• Global economy is reliant on supply of natural
resources
How do economies affect how/where
countries develop?
• Technology and resource distribution
– affects economic activities
– affects trade patterns
– affects levels of development
Four Categories
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Primary
Secondary
Tertiary
Quarternary
Primary Economic Activities
• Rely directly on natural resources
• Fishing, forestry, mining
• Hunting, gathering, and herding
– Ancient primary activities
– Based on environmental knowledge
– Passed down from generation to generation
Primary Economic Activities
• Farming
– Most important basic economy
– Developing nations
• 50% farming
– Advanced nations
• Less than 10% farming
Variety of agricultural/farming
methods
• Subsistence farming
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Developing countries
Grow enough for family’s needs
Have a good harvest, may sell or trade excess
Tools and techniques are very basic
Rely on animals or human power
Variety of agricultural/farming
methods
• Commercial farming
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Advanced economies
Crop is entirely sold at market
Modern equipment and techniques
Small labor force needed to produce crops
Some plantations in 3rd world countries
Geographic and economic factors influence the
location of commercial farms – cheap land
Secondary Activities
• People use raw materials to produce or
manufacture new products of greater
value
– Processing wheat into flour
– Milling lumber
– Producing electricity
Secondary Activities
• Cottage Industries
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Subsistence economies
Made in homes
Small in size
Made by hand
Secondary Activities
• Commercial industries
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Turn out large quantities of goods
Automobiles, appliances, heavy machinery
Factories are built near raw materials
Need to be able to ship finished goods
Need skilled workers, access to energy and
transportation
Tertiary Activities
• Service industries
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Do not need raw materials
Pursue activities that serve others
Lawyers, doctors, cab drivers, firefighters
Located where services are required
Quarternary Activities
• Modern economies
– Focus on the acquisition, processing and
sharing of information
– Education, research, government,
information processing
– Can be located anywhere but are usually
concentrated around highly educated people
– Internet is important
Basics of trade
• Nations who do not have natural
resources establish a trading network
• Goods sent out of a country – exports
• Goods brought into a country - imports
Trade Balance
• Governments seek balance
– between exports and imports
• Too many foreign goods (imports)
– cause lost profits
– local businesses to fail
• Increases a country’s debt
• Limit imports
– impose taxes (tariffs) on imported goods
– Products cost more/encourage buy local goods
Trade Routes
• Trade routes determined by
– geography
– transportation technology
– international relations
• History of trade
– Ancient spice trade
– Ancient trade of Greek and Roman empires
• Today - world trade
– relies on computers, shipping, airlines
Level of development
• Economic activities and trade patterns
• GDP – gross domestic product – total
value of goods and services produced in a
year divided by its total population
Developed Country
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High GDP
High standard of living
High level of education
High level of health care
Better transportation, communication
People generally consume more food and live
longer
• US, France, Germany, Japan
Developing Country
• Third World countries
• Lack adequate industries, modern technology
• Depend on developed nations for
manufactured goods
• Government instability
• Low standard of living
• Poor education, health care
• Nigeria, El Salvador, Ecuador, Vietnam
Great disparity among nations
• Wealthy nations invest money to help
poorer countries build their economies
• UN works to help stabilize countries by
providing health care
• Ideas are exchanged to promote political
economic and social change
Economic Activities
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Developed Nations
Technology is high
Industry
Per capita GNP- high
Less dependent on
other countries
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Developing Nations
Technology is lower
Less industry
More agriculture
Per capita GNP- low
Dependent on other
countries for support
and financial aid
• Often third world