Meaning & nature of resources


Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Meaning & nature of resources

  1. 1. Meaning and Nature of Resources Masters In International Business
  2. 2. Natural Resources • Intangible Resources – Good Health, Knowledge Resource does not refer to a thing or substance, but to a function which a thing or substance may perform to attain an end. Example-Iron Ore (mine) is a resource. Ore resources serve as raw material for Iron & Steel Industry
  3. 3. What is a resource? (Concept) • May be defined as “a way to achieve a given end” • Resources may be- 1. Tangible – (touchable) 2. Intangible Tangible Resources-(material things) – Ex: Land, Forest, Coal, Machinery
  4. 4. Dynamic Concept of Resource • Resource is not static • Resource increases in response to 1. Increased Knowledge-Learning curve, improved efficiency 2. Improved Arts-better ways of communication (ex-art of presentation by Power Point) 1. Expanding Sciences – Technological improvements- Ex- Information Technology 2. Changing individual wants-Life style 3. Social Objectives-Conserving Fossil Fuels, Reducing Pollution
  5. 5. Resource as a result of interaction of Nature-Man-Culture (Natural Resources and Human Resources) • Resources expand and contract in response to human wants and actions • When nature, mankind and culture interact the process leads to the creation of resources. • Nature is the basis of all resources Ex-Coal is found in nature as “neutral stuff” As man discovered more about nature, he converted this to a resource through ingenuity, skill and hard
  6. 6. Interaction of Nature, Man and Culture Nature Man Culture
  7. 7. Role of man in resource creation (Natural Resources and Human Resources) • Resource satisfy some wants or need Ex- Coal satisfies need for a source of fuel • Resource is functional and is related to man • Resource becomes neutral stuff when man no longer needs the resource • Hence man can create or destroy a resource
  8. 8. Wild Rubber of Congo & Amazon Basin Rubber Plantations of Malaysia & Indonesia Turned into neutral stuff With the development of
  9. 9. Culture – created as a result of human resource • “The sum total of all devices produced by man – with the aid, advice and consent of nature, to advise him in the attainment of his objectives” Zimmerman
  10. 10. Example-Culture • Man’s objective-Reduce toxicity and pollution in environment (Man’s Objective) • Breed varieties resistant to pest and diseases • Grow these varieties as a trail (Natures consent) • Introduce on commercial scale
  11. 11. Cultures role in over coming resistance from nature – Culture, Human Resource and Natural Resource Interaction Resistance : • barren and unproductive soil • typhoons, hurricanes, floods, • poisonous insects, diseases are all natural resistance Overcoming Resistance: • Improved agricultural practices-fertilizers, water management • Crisis management • Advances in medicine All these overcome resistance
  12. 12. Need for resource consciousness • Resource is the basis of economic prosperity of a nation • Developed nations have vast resources in the form of : 1. Natural 2. Human 3. Cultural resources 4. A resource conscious person seeks ways to increase the fund of his resources
  13. 13. Need For Resource Consciousness • Better and more efficient utilization of resources results in the expansion of total fund of resources A ton of coal today is 1/7 the cost of coal seven years back This is due to • Better ways of using coal • Reducing wastage to a minimum Man has always been resource conscious at an individual level. However when society as a whole becomes conscious by taking care of basic resources, it provides a lasting benefit to
  14. 14. Link Between Resources & Trade • Resource is natural where as Trade is a creation of mankind • Resources may be managed efficiently or inefficiently by man • The manner in which the resource is managed results in a country being termed as “resource rich” or “resource poor” The resultant effect is the country being “surplus” or “deficit” in a given resource. • “Surplus” “Deficit” “Consumption” “Production” result in trade