Global Trade and Resources

Every country in the world has different natural resources, skills, and industries. Because no single country can produce everything it needs, countries buy and sell goods with each other. This exchange of goods across borders is called global trade.

Imports and Exports

• Import — a good or service that a country buys from another country. When a country imports, it receives goods from abroad.
• Export — a good or service that a country sells to another country. When a country exports, it sends goods abroad.
• A simple way to remember: Im-port = goods coming In to the country; Ex-port = goods going out (eXiting) the country.
• Most countries both import and export — they trade with many partners around the world.

Why Do Countries Trade?

• Countries trade because they have different natural resources, climates, and skills.
• Trade allows countries to get goods they cannot produce themselves (e.g. a cold country imports tropical fruits).
• Specialization — countries produce what they are best at and trade for the rest.
• Trade helps economies grow by creating jobs and generating income.

Natural Resources vs Manufactured Goods

• Natural resources are raw materials found in nature: oil, timber, coal, iron ore, fish, crops.
• Manufactured goods are products made using natural resources or other materials: cars, electronics, clothing, food products.
• Many countries export natural resources and import manufactured goods, or vice versa.

Major Exports by Country

• Saudi Arabia — Oil (petroleum). One of the world's largest oil exporters.
• Brazil — Coffee and soybeans. Brazil is the top coffee producer in the world.
• Canada — Timber and wheat. Canada's vast forests and prairies supply the world.
• Australia — Iron ore and coal. Mining is a major part of Australia's economy.
• India — Tea and textiles. India has long been famous for its tea plantations.
• China — Electronics and manufactured goods. China is often called the "world's factory".