Distribution of Resources

SOL WG.9b

Resource Distribution

• Countries do not have the same types and amounts of resources. Here are some examples:

A. Japan - A highly industrialized country despite its lack of natural resources.

B. Russia - Many natural resources that are difficult to extract due to weather, distance, and lack of infrastructure.

Resource Distribution

C. United States - Abundant natural resources, diversified economy, and specialized industries.

D. Cote d’ Ivoire - Limited natural resources. Country must exchange cash crops for manufactured goods.

E. Switzerland - Limited natural resources but the country has a global service industry.

Russia

Cote d’Ivoire

• Cote d’Ivoire is the worlds largest producer of cocoa beans and a significant producer of coffee and palm oil. However, around 68% of the population works in agriculture. In comparison, about .6% of the labor force in the United States works in agriculture.

Switzerland

• Labor force by occupation in Switzerland: agriculture 4.6%, industry 26.3%, services 69.1%

• Switzerland has large banking and tourism industries

Effects of Unequal Distribution

• Since countries do not have all of the resources they need they usually specialize in goods and services that the country can market for a profit.

• Countries engage in exchange of goods and services. (sell what you can and buy what you can’t produce)

Comparative Advantage

• Comparative advantage is when a country exports goods and services that they can produce at a lower relative cost than other countries.

Why do Countries Trade?

• To import goods and services that you need

• To export goods and services that you can market for a profit