Factors affecting the supply and demand of resources

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Global issues population and resources
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 rather than in wider areas as they
can be hard to extract. Diffuse resources, which are more widely spread
around the world and therefore more common, are easier to extract and are
used in abundance as there is a greater supply.
Accessibility: depth of a resource may mean it is hard to access so there
would be less of that resource as it may cost more to extract than its end
value would be, meaning it would not be economically viable to extract.
Relief of land and climate can affect how accessible a resource is.
Location: offshore/onshore, coastal/inland. If a resource is coastal then it
will be worth extracting as it is easier to access and transport allowing it
to be traded which would be harder for inland resources.
Price: when the cost of extraction is less than the value it will make the
resource is worth extracting, allowing for a greater use. If the availability
of a 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 and is less likely to
grow so fewer resources are extracted.
Environmental awareness: more people are aware of our effect on the
environment resulting in the demand for non renewables to decrease.
Population demographics: populations in lower stages of the DTM use fewer
resources than those in the middle or higher stages of the DTM as countries
in stages 2/3 of the DTM are developing so need more resources to supply
a growing population.
Expectations: high standards of living are more commonly expected so
demand for resources that fuel a high quality of life will increase.
Intervention preventing production: embargoes which prevent trade
between countries of a certain resource will increase the demand in
countries which import that resource.

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Global issues population and resources
War/conflict: wars disrupt the production of resources as
infrastructure is damaged, transport and trade routes become unsafe
and money is used more on the military than on industry.
Legislation: protection of areas of land to preserve natural areas that is
vulnerable to change. This could restrict the exploitation of an area for
the extraction of its resources.…read more


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