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LESSON 4 · Capitalism, Socialism & the In-Between

Geography and Resources

A country's geography shapes which economic strategies work. Landlocked nations face higher trade costs. Resource-rich countries must manage the resource curse — the paradox where oil and mineral wealth often fuels corruption and weak institutions instead of broad prosperity.

Small nations often specialize aggressively — Singapore in finance and shipping, Switzerland in banking and precision manufacturing. Large nations can afford more diverse economies.