1. History and Geography: The Foundations of Culture
Chapter 3
History and Geography: The Foundations of Culture
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter Learning Objectives
1. The Importance of History and Geography in the Understanding of International Markets
2. History and Contemporary Behavior
3. History is Subjective
4. Manifest Destiny and Monroe Doctrine

3. Chapter Learning Objectives
5. Geography and Global Markets
6. Products and Marketing
7. Dynamics of Global Population Trends
8. Trade Routes and Industrialization

4. Historical Perspective In Global Business
Historical insights of a country are important for understanding:
Attitudes about the role of government and business
Relations between Managers and
Subordinates
Sources of Management Authority
Attitudes toward Foreign Corporations

5. History and Contemporary Behavior
Historical events between nations influence business and history
Why do the Japanese have such strong loyalty toward their companies?
Why is a distribution system so difficult for an outsider to develop?
Why are decisions made by consensus?

6. History and Contemporary Behavior
Why are the Japanese loyal to family, to country, to company, and to social group?
Why do the Japanese cooperate?
Answers found in Japanese history and Confucian philosophy in which loyalty is to country
In short, any nation’s business and political culture is shaped by history

7. Geography and Global Markets
Study of geography is important in the
evaluation of markets
Need to be knowledgeable about the effects of
geographic diversity on the economic profiles
of various nations
Climate and topography are examined as facets
of the broader and more important elements of
geography

8. 50 kilometers(38.6 kilometers under water)
Channel Tunnel: Between UK and France
7 years and half
50 kilometers(38.6 kilometers under water)
A miracle of world engineering

9. Oresund Link (between Denmark and Sweden)

10. Colonia Bridge (between Argentina and Uruguay)

11. Climate and Topography
Knowledge about geography, the climate and physical terrain when appraising a market
Influences marketing from product adaptation to more profound influences on the development of marketing systems
Climatic features affect uses and functions of products and equipment

12. Social Responsibility & Environmental
Management
Firms required to be socially responsible especially in foreign markets
Firms should comply regulations against environmental pollution and disposal of hazardous waste
Economic development and protection for the environment can coexist
Sustainable development guides many governments and multinational companies today

13. Sustainable Development: Key Propositions
There is a crucial and potentially positive link between economic development and the environment
The costs of inappropriate economic policies on the environment are very high
Addressing environmental problems requires that poverty be reduced
Economic growth must be guided by prices that incorporate environmental values
Since environment problems pay no respect to borders, global and regional collaboration is sometimes needed to complement national and regional regions

14. Consumer Related Issues
UNICEF sponsored this advertising campaign against child labor. The field of consumer behavior plays a role in addressing important consumer issues such as child exploitation.

15. Natural Resources Importance of natural resources especially
to manufacturing of products
Supply of natural resources not endless
Human labor provides the preponderance of energy in many countries
Importance of oil and gas in world energy
consumption

17. Global Population Trends
Important to know about current
population trends because people
constitute markets for various
categories of goods
Necessary to know about:
(1) rural/urban population shifts
(2) rates of growth
(3) age levels, and
(4) population control
(5) rural-urban migration of world population
(6) population decline and aging
(7) worker shortage and immigration

21. World Trade Routes and
Communication Links
Knowledge about trade routes over land, sea, and air important in making marketing decisions
The majority of world trade is among the most industrialized and industrializing countries of Europe, North America, and Asia
Need to be aware about communication links—the underpinning of all commerce
Impact of the Internet revolution especially for global marketing of products

23. The Triad: Trade Between the United States and Canada,
the European Community, and Japan ($ billions)
EUROPEAN
COMMUNITY
66.3
195.4
151.6
89.0
UNITED STATES & CANADA
JAPAN
91.5
141.7
For additional figures see: “Indicators of Market Size for 115 Countries I” Crossborder Monitor, August, 1997, pp.4-8