Question

How do factors of natural resources influence the economic development of societies?

Answer 1

If a nation has a lot of a resource, lets say oil, then they will prosper based on oil. People need oil, so they can sell it for high price and a lot of it since they own the land it's on. They start to get more money into their area, more pay towards them and they begin to thrive. This is varied on experience though based on the economical system that nation has decided upon. There's three major economical systems: traditional, command, and free enterprise. Traditional means that if your a family of fishermen, you'll be a fisherman. Command economy is more like communism, if you're good at something then you will be trained in that specifically. Free enterprise is capitalism, the best economical system.