Industrial Resources and Global Economic Systems

Natural Resources and Raw Materials

Raw materials are natural resources which industry processes into finished products. Energy sources are natural resources which provide power. Raw materials have three origins: animal, vegetable, and mineral.

Classification of Minerals

• Metallic minerals: These contain metals.
• Non-metallic minerals: These do not contain metals.
• Energy minerals: These provide energy.

Renewable and Non-Renewable Resources

Renewable resources either regenerate naturally after they are used or are never used up. Non-renewable resources are either limited in quantity or form more slowly than they are consumed. Minerals are non-renewable resources; some can be recycled, while others are non-recyclable.

Energy Sources and Industrialization

Conventional Energy Sources

Oil and natural gas are conventional energy sources. They are fossil raw materials and are considered non-renewable resources because they are used much faster than they can regenerate. This means they will be exhausted in the near future. With current techniques, about 40% of the oil and gas reservoirs can be extracted. These are usually found far from industrial regions of the world.

Global Industrial Development

Industry is powerful in developed countries. Some countries have become emerging powers thanks to a rapid industrialization. However, there are many countries in Africa, Latin America, and Asia which are still not industrialized.

Fundamentals of Economic Activities

Economic activities are all the processes used to obtain the goods and services that people need. This involves three parts: production, distribution, and consumption.

The Evolution of Money

Types of money include:

• Barter
• Natural coins
• Metal coins
• Paper money
• Bills of exchange and cheques
• Plastic money

Economic Sectors and Contributors

• The primary sector: Consists of activities which obtain food and raw materials.
• The secondary sector: Consists of economic activities which transform raw materials into finished products.
• The tertiary sector: Consists of many different activities which provide a service to society.

Economic activities involve contributions from people, companies, and the state.

Factors of Production and Labor

Production Possibilities

Production is made possible by:

• Natural resources: Renewable and non-renewable resources.
• Capital: This includes physical capital, human capital, and financial capital.
• Technology: Manual, mechanical, and automated.

The productivity of a worker is the amount of goods and services he or she can produce in one day.

Population and the Labor Market

The economically active population consists of everyone aged 16 and over who supplies labor. This includes:

• Employed people: People that work.
• Unemployed people: People that do not work.

The inactive population includes everyone 16 and over who is neither employed nor unemployed. In the labor market, employers are represented by confederations of employers, while workers are represented by labor unions.

Economic Organization Systems

Economic activities are organized into three main systems: subsistence systems, communist systems, and capitalist systems.