RESOURCES - AN ECONOMIC PERSPECTIVE. Extracting natural resources brings money into the economy....

RESOURCES - AN ECONOMIC PERSPECTIVE

Extracting natural resources brings money into the economy. How?

1. Provides jobs for more than a million Canadians in resource-related industries.2. Exports of raw materials brings money into the country.3. Exporting companies pay royalties and income taxes to

the government.

Exports – the sale of products or services to another country.

Royalties – a fee paid to the government for the use of resources.

The economic value of our natural resources can be measured in 3 main ways.

Gross Domestic Product (GDP) - the value of all the goods and services produced in one country in one year.

Complete Figure 6.5 Activity Sheet.

Most natural resource development is controlled by large international companies.Transnational corporations – a large company that has business operations in several countries.

- Based in Brazil- 126,000 direct employees- 50,000 more in ongoing projects- Operates in 38 countries- World leader in iron ore production- A leader in nickel production- Operates Voisey’s Bay mine- Operates Long Harbour smelter- Says it is committed to sustainable

growth, respect for environment and social responsibility

To develop a resource sustainably, 3 things are necessary:1. Maintain a strong economy2. Consider the needs of people in local communities3. Protect the natural environment

Can there be problems with trying to do all three?

Large resource projects require environmental assessments – detailed study to determine the potential environmental impact of a proposed development.

Case study - page 246.

Why is it being developed?

What are the impacts on the environment?