factors affecting suply and demand of resources

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Global issues- economic issues
Factors affecting the supply and demand of resources
Distribution: point resources which are specifically located, are likely to
be used in the location they are found in than wider areas as they can be
hard to extract. Diffuse resources which are more widely spread around
the world and therefore are more common and are often easier to extract,
these are used in abundance as there is a greater supply.
Accessibility: depth of resource underground may mean it is hard to access
so there would be less of that resource as it may not be economically viable,
if more is spent on accessing the resource than the end resource is worth
when sold. Relief of land and climate could affect how accessible a resource
can be.
Location: offshore/onshore, coastal/inland. For example, if a resource is
coastal then it may be worth more to extract as it is easier to access and
transport allowing for that resource to be traded, this would be harder for
inland resources.
Price: when the cost of extraction is less than the value it would make the
resource worth extracting, allowing for a greater use. If the availability of
the resource is high then it would be more viable to extract it.
Competition between countries: this can cause prices to fluctuate which are
also influenced by trading between countries.
Global economic situation: demand for resources drops as a result and are
less likely to expand, so less resources will be extracted.
Environmental awareness: some people prefer to be environmentally
friendly so will use less fossil fuels, resulting in the demand for non
renewable resources to decrease.
Population demographics: populations in lower areas of development use
fewer resources than highly developed countries. Countries in lower stages
of the DTM which have a growing population will have an increasing demand
for resources, increasing the need for a greater supply.
Expectations: high standards of living are now more commonly expected
which means the demand for resources that fuel this increase in quality of
living will increase.

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Global issues- economic issues
Intervention preventing production: embargoes which prevent trade
between certain countries will increase the demand in countries which
import that resource.
War/conflict: wars can disrupt the production of resources as
infrastructure is damaged or destroyed, transport and trade routes can
become unsafe and money is spent more on the military than industry.
Legislation: protection of areas of land to preserve natural areas that are
vulnerable to change. This could restrict the exploitation of the area foe
the extraction of resources.…read more

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