Natural Resources

Definition

Natural resources are materials and components that can be found in the environment, which are used to support human life and economic activities. These resources include minerals, forests, water, and fossil fuels, and their availability often shapes economic relations and international partnerships. In the context of emerging global powers, the control and exploitation of natural resources become critical for nations seeking to bolster their economies and assert their influence on the world stage.

5 Must Know Facts For Your Next Test

1. Latin America is rich in natural resources such as copper, lithium, oil, and agricultural products, making it an important region for global supply chains.
2. China's growing demand for natural resources has led to increased investment in Latin America, often resulting in new trade relationships and economic dependency.
3. Resource-rich countries in Latin America face challenges such as corruption, environmental degradation, and social inequality due to the extraction and export of their natural resources.
4. The relationship between Latin American countries and global powers is heavily influenced by competition for access to these natural resources, shaping foreign policy and economic strategies.
5. The sustainability of resource extraction is becoming a central issue as countries balance economic growth with environmental preservation and social responsibility.

Review Questions

• How do natural resources influence the economic relationships between Latin American countries and emerging global powers?
  • Natural resources serve as a crucial factor in shaping economic relationships between Latin America and emerging global powers like China. As these countries seek to fuel their rapid industrial growth, they look to Latin America for essential materials like copper and lithium. This demand can create beneficial trade agreements, but it can also lead to economic dependency where Latin American nations may prioritize resource extraction over other economic development needs.
• Discuss the environmental implications of natural resource extraction in Latin America and how this affects international relations.
  • The extraction of natural resources in Latin America often leads to significant environmental consequences, including deforestation, pollution, and loss of biodiversity. These issues can strain relations with global powers that may advocate for sustainable practices. As environmental concerns grow globally, countries that prioritize eco-friendly approaches may gain favor in international dealings, impacting how resource-rich nations engage with external partners.
• Evaluate the long-term effects of resource dependency on Latin American countries in relation to their development goals and global positioning.
  • Resource dependency can have profound long-term effects on Latin American countries. While it can drive short-term economic growth through exports, it often leads to vulnerabilities such as fluctuating market prices and over-reliance on a limited number of commodities. This situation can hinder broader development goals by neglecting diversification efforts. Additionally, as global dynamics shift with emerging powers seeking sustainable alternatives, resource-dependent countries may find themselves reevaluating their roles in the international community.

Related terms

Resource Extraction:

The process of removing natural resources from the environment, which can have significant environmental and social impacts.

Trade Agreements:

Contracts between countries that outline the terms of trade, often focusing on the exchange of natural resources and goods.

Sustainable Development:

An approach to economic growth that aims to meet present needs without compromising the ability of future generations to meet their own needs, particularly in relation to natural resource use.