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

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

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

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

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

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

7. 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.

8. 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.

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

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

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

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

13. 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.

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