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Questions
How does the economic condition of a nation depend on its natural resources?
How is economic growth of a country dependent on availability of natural resources? Explain with the help of examples.
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Solution
- Natural resources such as land, water, forests, minerals, and energy have a significant impact on a country’s economic prosperity.
- These resources provide the foundation for agriculture, manufacturing, and trade.
- Agriculture requires fertile land and water, whereas industries depend on minerals, coal, and petroleum for raw materials and energy.
- Forests provide timber and other materials for a variety of industries while also supporting livelihoods.
- If resources are few, development slows and dependence on imports increases.
- For example, Middle Eastern countries with large petroleum reserves earn a lot of money by exporting oil. India’s coal and iron ore resource reserves support the steel and power sectors, but Japan, despite its advanced industrialisation, relies on imported raw materials due to limited natural resources.
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