Resources, World Trade, and Technology Chapter 3 Sections 3 and 4

Products of Earth that people use to meet their needs. Resources Products of Earth that people use to meet their needs. Types of Resources Renewable Resources cannot be used up. They can be replaced naturally. Examples: hydroelectric (water) power and solar (sun) power. Non-Renewable Resources cannot be replaced. Examples: nuclear energy, coal, oil, and natural gas

Globalization, Interdependence, and Specialization Globalization is the shrinking of the world. People from different countries share ideas and products. Globalization is leading to interdependence. Interdependence exists when countries depend on each other to meet their needs. Specialization leads to interdependence. When a country produces only certain products, that country must rely on other countries to meet some of their needs.

When countries exchange goods and services. World Trade Countries export (sell) the products they produce to other countries. They import (buy) the products that they need from other countries. Barriers (Limits) on Trade Tariffs – taxes on imports Quota – a limit on how much of a product can be imported. Sanctions – when countries punish each other by limiting trade. When countries trade together without barriers. NAFTA, North America Free Trade Agreement says the U.S., Mexico, and Canada will freely trade goods. What is Free Trade?

3 Types of Economic Systems The Economic System in a country answers the three basic economic questions. What? How? For Whom? will goods be produced. 3 Types of Economic Systems Command Economy – the government makes all of the economic decisions. Market Economy – economic decisions are made by people. The laws of supply and demand drive the prices. Mixed Economy – The government may regulate certain economic activities, but the people control production.

Does technology shrink the world? Technology leads to globalization! Transportation Technology makes it easier to travel to new places and experience new cultures. Communication Technology (telephone and internet) connects people from all over the world and allows them to share information.