RESOURCES AND WORLD TRADE Coxwell 3:3 7th Grade Geography

Resources Remember that people live in some areas to gain access to resources. There are two types of resources renewable and nonrenewable.

Renewable Resources These are resources that cannot be used up or can be replaced naturally. (Grown again) Wind Sun Forests Grasslands Plants Animals Soil.

Nonrenewable Resources Limited in supply. They cannot be replaced. Fossil fuels (coal oil and natural gas) Nuclear energy.

Economic Systems Traditional Economy: 1. Decisions based on customs. 2. You may have to barter.

Command Economy Government makes all economic decisions. Command Economies are under communism.

Market Economies People (citizens) make their own decisions about what to produce, how to produce, and for whom to produce. Prices are determined by supply and demand.

Market Economy Continued… Free Enterprise: You have the right own businesses and to make a profit with government interference. Capitalism: Another name for a market or free enterprise economy.

Mixed Economy Mostly command economy but government allows some free enterprise. Most nations have this economy.

World Trade Resources (like people) are not evenly distributed. Countries have to trade with each other to get resources that they need.

Barriers to Trade Government’s manage trade to benefit their country. Do this through: 1. Tariffs (taxes) 2. Quotas (number limit)

Free Trade Some countries are trying to get rid of trade barriers. EXAMPLES: EUROPEAN UNION (EU) NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

Developed v. Developing A lot of manufacturing. Countries found in Europe, North America, Australia, and Japan. DEVELOPING Have few to little manufacturing centers. Relies on farming. Found mostly in Africa, Asia, and Latin America.

Lastly, what’s the rule? Generally industrial countries make and have more money than countries that rely on farming.