The Bahamas' economy is driven by the four key factors of production: land, labor, capital, and entrepreneurship. Land is driven by the nation's natural resources, like its tropical climate, fertile soils, and marine biodiversity. Labor refers to the working people, most in tourism, which employs over half of the population. Capital involves hotels, resorts, and infrastructure that enable production and services. Entrepreneurship is represented by individuals and businesses, particularly in the tourism and financial services industries. Compared to the United States, T he Bahamas depends more on tourism and natural resources, whereas the U.S. economy is broader and more technology-driven.
The Bahamas is located in the North Atlantic Ocean. Its natural resources are salt, aragonite, timber, and arable land. 1.3% of the land is agricultural, 50.9% is forest, and 47.8% is other. The natural hazards can be hurricanes and other tropical storms because they can cause flood and wind damage. Current environmental issues The Bahamas is facing is coral reef decay and solid waste disposal.
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