Geography and Business
Geography affects society and
business in many ways.
Bodies of Water
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This includes rivers, oceans, seas, etc.
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Water may assist business by providing
power, water, and transportation.
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Water may hurt businesses by requiring
bridges, or flooding.
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Can have a big affect on
business and population, as
cities along a body of water are
more likely to be a trading area
than landlocked cities.
Mountains
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Mountains are a major barrier within a
country to transportation and
communication.
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Ex: Colombia has four major population
areas separated by mountains. Air time
from Bogota to Medellin is 30 minutes,
but driving time is 10-12 hours.
Climate
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Climate is one of the most important
environmental consideration when
appraising a market.
Examples:
 Altitude, heat and humidity may
affect how equipment operates.
 Snowmobiles won’t sell in Jamaica.
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In an area with extreme weather,
businesses must keep extra inventory
Rolls-Royce found that armor-plated
cars required extensive body work
after a short time in Canada due to
the salted roads in winter.
Resources
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Resources are a basic power source, raw
material, and product for businesses.
The ability to generate energy is critical
for society to survive. A healthy person
can produce enough energy to keep a
100-watt bulb burning. Without
additional resources, the world’s people
could not keep themselves alive and
healthy.
Electricity Production
(millions of kWh)
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World 12,342,700
U.S.
3,629,000
China 1,160,000
Japan
948,559
Russia 834,000
Canada 549,162
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http://www.photius.com/wfb1999/rankings/electricity_production_0.html
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Infrastructure
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Infrastructure is the system of public
works for a region.
This includes:
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Roads
Railroads
Airports
Communication systems
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An example of a lack of
infrastructure can be found in
Ecuador, where it is almost
impossible to drive from
Guayaquil to the capital of
Quito. (Only 200 miles away!)

An example of infrastructure helpful to
business is a 7.2 mile tunnel that cuts
through the base of Mont Blanc in the
Alps. This brings Rome and Paris 125
miles closer and provides a year-round
route between Geneva, Switzerland and
Turin, Italy.
Internet Infrastructure
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Internet usage and availability varies
widely throughout the world
By continent, 47.3% of the population of
Oceania uses the Internet but only 5.8% of
Asia uses the Internet
By country, Sweden has the highest usage
rate with 75.2% of the population using the
Internet (U.S. has 60.9% of the population)
Population
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The population of an area provides
both labor and customers for
businesses.
Examples:
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Markets have similar tastes
Growth of population will affect
labor supply and market size
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Population also leads to societal
issues that affect the economy such
as overcrowding, lack of housing,
shortage of food, and lack of
infrastructure.
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Ex: Mexico City has seen its population shift
from rural areas to the city. This has lead to
severe crowding with conditions such as:
 2 million families without running water or
sewer facilities
 14,000 tons of garbage are produced each
day, but only 8,000 tons can be processed.
The rest is left to rot in the open.
 16,000 gallons of water are consumed each
second, but only 2,640 can be produced
locally. The rest must be pumped in.
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China’s population is 22% of the world’s
population
Produces 18% of the worlds grain
In 1979 China’s population was also
growing at an alarming rate of 1.9%
annually. Today the population growth is
only .07% annually.
How is China going to feed its growing
population in the years to come on the
same land that has always been there? In
other words, how can China increase the
productivity of its land?