RESOURCES - AN ECONOMIC PERSPECTIVE · AN ECONOMIC PERSPECTIVE. Extracting natural resources brings money into the economy. How? 1. Provides jobs for more than a million Canadians

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. 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.

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

Valuing Resources• They bring economic value and future job growth

• Your own job prospects in the future may depend on the success of Canada’s

Natural resources.

• It is not just money which is of value

Ecological benefits

• Ability of trees to produce oxygen and remove carbon dioxide from atmosphere

• Aesthetic benefits-people find forests, open spaces of farmland, and wilderness

areas to beautiful and of great physical and psychological value

Trends: How resources are be used and managed gradually changes over

time..

• Resource Ownership

• Environmentalism

• Technology?

• Consumption

• Competition

• Aboriginal Rights

Using Resources –Trade-Off Challenge

• One cannot have resource development without damage to the

environment, but.....

• We need the resources for raw materials to manufacture the things we

need and want and the jobs they provide

• The key is to practice sustainable development

To develop a resource sustainably, 3 things are necessary:

1. Maintain a strong economy

2. Consider the needs of people in local communities

3. 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?