sawali

Karma: 49425

will natural resource countries will survive better in recession? why?

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+1 Views: 1363 Answers: 4 Posted: 11 years ago

Tags: resources natural

4 Answers

digger

Karma: 221155

Yes, that is essentially why Canada is fairing much better than most other nations these days. That and a tightly controlled banking system.

11 years ago. Rating: 4
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Colleen

Why does gas cost so much in Canada when they have so many oil refineries there? One would think it would be cheaper, especially for towns near the refineries. You guys pay so much more for gas compared to what we in the states pay and the majority of our oil is imported and still needs to be refined.

commented 11 years ago

digger

Most of Canada's exported oil is non-refined. Nonetheless, the economic benefits of exporting crude oil is significant and benefits the whole country despite the fact that natural resources fall under provincial jurisdiction.
As for why Canadian refined gas sold domestically is sold at higher prices than in the U.S., that is due to the fact that federal and provincial taxes imposed on gasoline (that's petrol to you Brits;-) ) are significantly higher than what's charged by American fed and state rates. Same goes for alcohol. Beer,wine and spirits are pricier here than in the U.S. (Why do you think I visit you folks so often? OK, I'm partial to America but I digress)
I suppose that taxing "vices" is one of the many ways that Canada finances our "Obamacare" up here. I wouldn't want it any other way. And I'm fiscally conservative ! Go figure.

commented 11 years ago

Colleen

OK, that explains it well. It does hurt the citizens though who can only get minimal paying jobs even if they have a degree. I have a friend their who has a degree in healthcare, specifically the mentally challenged. That job starts at $9/hr which is ridiculously low since she had to pay for education to get the degree. She has a hard time paying the gas prices there (along with other highly taxed items).

commented 11 years ago

digger

Health care in Canada also falls under provincial jurisdiction so unionized salaries vary but I can assure you that $9.00/hr is NOT a gov't paid job. It's at least twice that. Sounds like she's working for a private clinic and even at that, it sounds awfully low.

commented 11 years ago

Colleen

Both were actually private assisted living homes. But she was in charge of food, meds and anything else they needed help with. Still is a low pay compared to what the same job pays here in the states.

commented 11 years ago

Ann

Colleen, minimum wages start at $9.40-$11.oo per hour, depending where you live in Canada.Your friend schould get paid much more than that.

commented 11 years ago

Colleen

I thought so too but in her area, $9.00 - $11.00 was all she could get.

commented 11 years ago

digger

She needs an agent.

commented 11 years ago

Colleen

She needed to listen to me is what she needed to do. She's with neither house now.

commented 11 years ago

ROMOS

Karma: 2300335

Article from Property Bond, Brazil

A recession in the US will not have much of an impact on Brazil's natural resources sector, it has been suggested.

In an article on the Forbes website, Curtis Hesler of Professional Timing Service claimed that demand from Brazil - and fellow BRIC countries India, China and Russia - will continue to stimulate demand for raw materials around the world over the next few decades.

"Demand for oil will continue to climb in the economies of China, India, Brazil, Russia, the Middle East and the rest of Asia," the expert remarked.

He added that these nations "will continue to drive demand higher globally for all raw materials for the foreseeable future".

Mr Hesler's comments came as South American bank leaders met in Chile to discuss the financial crisis.

In a joint statement, the finance bosses - including Henrique Meirelles, president of the Central Bank of Brazil - claimed the continent is in a strong position to stand up to the financial crisis, due to "solid economic fundaments".

11 years ago. Rating: 3
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Colleen

What is more countries, other than the U.S. fail?

commented 11 years ago

ROMOS

The question is about natural resources,if there is still a demand for them they will sell to the the countries who can afford to pay for them.

commented 11 years ago

Colleen

But if the other countries run out of money (which a lot of countries are in danger of doing so) then there will be no customers. This will affect that countries economy.

commented 11 years ago

ROMOS

Granted, but the countries whose economies don't completely fail will still need the resources from the countries who provide them.
After all, it is a "global economy".

commented 11 years ago

Colleen

If a country goes bankrupt, then what? They can not afford to buy anything. Who will extend credit to a bankrupt country?

commented 11 years ago

sawali

No money, no resource. A bankrupt country cannot get the resource because - No money.

commented 11 years ago

Colleen

Exactly.

commented 11 years ago

ROMOS

Isn't that what I've been saying or am I missing something here?

commented 11 years ago

Colleen

Is it? Must be the accent, rofl

commented 11 years ago

Colleen

Karma: 2042400

Not if the failing countries can not afford their product/s. They will sink like the rest with no revenue or not enough to take care of their own.

11 years ago. Rating: 3
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sawali

what products and what do you mean by 'if...cannot afford'? This answer needs elaboration to be understood. It is unintelligible as is.

commented 11 years ago

Colleen

I think the answer speaks very clearly. If no one can afford the product, then the country offering it will lose revenue and this will effect their economy.

commented 11 years ago

sawali

Colleen, it is the supply and demand which will decide pricing. If the cost of extracting a resource is high, the demand won't be there but that country will not take the trouble to extract the resource. A resource is wealth in the ground.

commented 11 years ago

Colleen

If the resource is their only form of wealth as oil is to the Arab countries, don't you think their economy will be affected if they can not sell their oil for what it cost them to take it out of the ground? I'm looking at a world wide recession here that can cause more than one country to fail and go bankrupt. I'm projecting worse case.

commented 11 years ago

lambshank

Karma: 263570

Australia appears to have fared reasonably well, the man in the street not so well with the carbon tax,and wages not rising enough to cover the cost of inflation but a mining boom has boosted the economy, a country rich in natural resources, coal,ore,gold,diamonds,uranium,natural gas to name a few, China has a huge appetite for these resources