The World's Natural Resources
Natural resources are useful materials that come from the Earth. They are unevenly spread, so no country has all it needs. This uneven distribution encourages trade and cooperation between nations.
Key idea
Renewable resources (such as solar energy, forests and water) can be replaced within a human lifetime, while non-renewable resources (such as petroleum, coal and minerals) take millions of years to form and can run out.
Major Resources
- Energy: petroleum, natural gas and coal (non-renewable), plus renewables like solar, wind and hydropower.
- Minerals: iron ore, bauxite, tin and gold, used in industry and construction.
- Forests and water: supply timber, food, freshwater and support life.
Economic Cooperation
Because resources and industries differ from place to place, countries cooperate to buy what they lack and sell what they have in surplus. This is done through trade and by joining economic groupings.
Example
Malaysia is a member of ASEAN, a grouping of Southeast Asian nations that lowers trade barriers and promotes regional peace and development. Malaysia is also part of APEC, which links economies around the Pacific.
Cooperation brings benefits such as larger markets, shared technology, more investment and stronger political ties. However, over-reliance on selling raw materials can leave a country exposed when world prices fall, so many nations diversify their economies.
Remember
- Resources are unevenly distributed, which drives world trade.
- Renewable = can be replaced; non-renewable = can run out.
- ASEAN and APEC are examples of economic cooperation.