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The effect refers to its contribution to your elemental resistance, meaning if an enemy casts the same element spell on you like "Stone", for example, then you will have a slightly higher chance to resist the spell, or you may take less damage from the spell. This also applies to Element based moves that mobs will use, having a High earth resit may help you to avoid the slow effect from Spider Web. Barspells and Elemental Resist+ gear is highly prized for certian endgame mobs such as Tiamet to allow PLD to tank Tiamet in the sky and resist the fire based attacks.