Difference in national resources
Topic: International Trade: Patterns, Ports and the WTO · NCERT: Class 12, Ch 8 "International Trade"
Meaning
Difference in national resources is a basis of international trade. Resources are spread unevenly because geology, relief, soil and climate differ from place to place. Geology sets a country's mineral base, and minerals support industry. Lowlands suit farming, while mountains suit tourism. Climate decides crops and animal products: wool comes from cold regions, while bananas, rubber and cocoa come from the tropics. Each country lacks some resources and has others to spare, so they trade.
Example
The Gulf countries sit on large oil deposits, and India has too little oil for its needs. India therefore imports Gulf oil.
Don't confuse with
- Stage of economic development: that basis is about how industrialised a country is. This one is about what nature has given it.
Related concepts
- Basis of international trade
- Population factors in trade
- Stage of economic development and trade
- Foreign investment and trade