How much does the development of ordinary iron and steel enterprises have to do with resources
Here it mainly refers to;The relationship between the development of a country's iron and steel enterprises and the country's iron ore resources. Is there really value in owning iron ore, and how much is it worth?Is it very helpful for the development of steel enterprises in this country?Iron ore is an important mineral resource, and the development of iron ore can obtain some windfall profits, we can call windfall profits resource rent, which is similar to the rent of ground rent, which is the value of iron ore resources. How much help does iron ore resources help a country to develop iron and steel enterprises?
Iron ore is developed, and no matter who it is sold to, a part of the resource rent can be obtained, that is, the resource exploitation windfall profit. **To domestic or foreign** is generally the same. If it is cheaper for the domestic one, the resource rent obtained by this iron mine will be less. On the whole, the income of a country's iron ore mines in a certain period of time is certain. For the iron ore and steel enterprises in this country, if the iron ore is sold low, it is beneficial to the iron and steel enterprises, but the iron ore will lose the same value. Such an act is of little value to the country as a whole. Generally speaking, **for domestic companies** will be the same as **for foreign companies**.
For iron and steel enterprises in countries without iron ore, in the purchase of iron ore, it is almost the same as that of steel enterprises in countries with iron ore, and there is no difference. From this analysis, it can be seen that the development of iron and steel enterprises has little to do with whether there is iron ore in their own country, and it does not take much advantage. It is estimated that the biggest cheapest is the short transportation distance. Domestic iron and steel enterprises will generally be closer to their own country's iron mines than foreign iron and steel enterprises, which can save some transportation costs. From the point of view of traffic, there is a slight advantage. However, the cost of transportation does not account for a large proportion of iron ore**. Therefore, from the perspective of the development of iron and steel enterprises, the impact is not great.
The market sales of iron and steel enterprises may have a greater impact on the development of iron and steel enterprises, and it is indeed a great advantage to have a broad domestic steel market. This is a significant advantage over the cost of transportation. Generally speaking, the products of iron and steel enterprises are mainly sold domestically, which is almost the case for large countries, and the proportion of export sales is not very large. Therefore, the domestic market determines the size of a country's steel enterprises, not the amount of iron ore production determines the size of domestic steel enterprises. Japan, along with South Korea and Australia, are examples of this. Although the first two countries do not produce iron ore at all, their steel enterprises are well developed and large-scale, due to the large domestic demand for steel. Australia produces a large amount of iron ore, most of which is exported directly, and its steel enterprises are not large due to the small demand in the domestic market.
The development of a country's steel enterprises has little to do with whether the country has iron ore or not, but mainly with the demand in the domestic market. From the development model of iron and steel enterprises, it can be seen that if a country claims that its resources are small, or per capita resources are small, it is very detrimental to its own country's industrial development, generally speaking, this is not the case.
Small resources per capita or large populations are generally accompanied by a large domestic market. The domestic market has a great impact on the development of enterprises, and it is more important than whether they have mineral resources. Therefore, a large population is generally accompanied by a large domestic market, which is conducive to the development of their own enterprises. A large population is generally accompanied by a small per capita resource, which is not conducive to the development of enterprises in their own country. One is favorable and the other is unfavorable, and after the two are combined, the positive or negative value obtained is generally very small. Therefore, it doesn't matter what the population is, and it affects the development of its own business.