Natural Resources

Definition

Natural resources are materials and substances that occur in nature and can be used for economic gain, including minerals, forests, water, and fossil fuels. In the context of industrialization, these resources provided the essential raw materials necessary for manufacturing processes and fueled the rise of big businesses by supporting mass production and technological advancements.

5 Must Know Facts For Your Next Test

1. The availability of abundant natural resources in the United States, such as coal, iron, oil, and timber, played a critical role in fueling industrial growth during the late 19th century.
2. Railroads expanded rapidly as they relied heavily on natural resources like steel and coal to build infrastructure and transport goods across the country.
3. Big businesses emerged as powerful entities during this time, often monopolizing natural resource industries to control prices and maximize profits.
4. The extraction and use of natural resources led to significant environmental changes and concerns about sustainability, prompting debates about responsible resource management.
5. Government policies, such as land grants and subsidies, often supported the exploitation of natural resources, allowing businesses to grow rapidly while impacting local economies and ecosystems.

Review Questions

• How did the abundance of natural resources in the United States influence the development of industries during the period of industrialization?
  • The abundance of natural resources like coal, iron, and oil in the United States was crucial for the development of industries during industrialization. These resources provided the raw materials needed for manufacturing and helped fuel technological advancements. The easy access to these materials allowed companies to increase production efficiency and expand operations, which contributed significantly to the rise of big businesses during this period.
• In what ways did big businesses exploit natural resources to establish monopolies during industrialization?
  • Big businesses exploited natural resources by consolidating control over key industries such as oil, steel, and railroads. By acquiring or merging with competitors, these companies created monopolies that dominated their respective markets. This allowed them to set prices without competition and maximize profits. Their power also extended to influencing government policies that favored their interests, further entrenching their control over natural resources.
• Evaluate the long-term implications of natural resource exploitation during industrialization on modern economic practices and environmental policies.
  • The exploitation of natural resources during industrialization has had lasting implications for modern economic practices and environmental policies. The focus on maximizing resource extraction contributed to unsustainable practices that have led to environmental degradation and depletion of resources. Today, there is an increasing recognition of the need for sustainable management of natural resources, which has prompted shifts towards renewable energy sources and responsible consumption practices. This evolution reflects a growing awareness of the balance between economic growth and environmental stewardship that is necessary for future generations.

Related terms

Raw Materials: Basic substances extracted from natural resources that are used in manufacturing and production processes.

Industrial Revolution:

A period of rapid industrial growth and development during the late 18th and early 19th centuries, marked by significant technological advancements and increased production capacity.

Capitalism: An economic system where private individuals or businesses own capital goods and production means, relying on natural resources for wealth generation.