HISTORY AND
GEOGRAPHY: The
Foundations of Cultural
Understanding
Chapter 3
HISTORICAL PERSPECTIVE IN
GLOBAL BUSINESS
Understanding a country’s history is
critical in gaining knowledge of the
culture.
History is subjective
Examples:
• Crossing Borders 3.1 pg. 59
• How the U.S. and Mexico define their
relationship
• Manifest Destiny and the Monroe Doctrine
GEOGRAPHY AND GLOBAL
MARKETING
Effects that Climate & Topography have
on International Marketing:
Need to understand the effects that
geography has on countries’ ability to
supply needs, transport products, and
impact the economy
Good example: Crossing Borders 3.4 pg.
66 “Drinking Fog”
GEOGRAPHY AND GLOBAL
MARKETING
Effects that Climate & Topography have on
International Marketing:
Physical barriers effect the country’s economic
growth and ability to trade
• How countries overcome these natural abilities can mean
the difference between a prosperous economy and one
that is not (access to markets, lower distribution costs,
lower production costs…)
– Industrialized nations are better able to overcome
geographic obstacles vs. underdeveloped, less prosperous
economies
– United States vs. South America (jungles, mountains)
GEOGRAPHY AND GLOBAL
MARKETING
• Examples of countries that were able to
overcome their geographical limitations
– Channel Tunnel
– English channel between Britain and France
– Oresund Link in Europe
– Sweden/Denmark built bridge and tunnel across
the Baltic Strait to Continental Europe
– Colonia Bridge
– Bridge between Argentina and Uruguay
Geography, Nature and
Economic Growth
Less-privileged countries suffer
disproportionately from natural disasters over
more economically stable countries
In more prosperous countries, the ability to
prepare, plan and overcome natural disasters is
much greater
• Have resources (money and better technology) to detect
natural disasters and adapt to uncontrolled
environmental situations
Social Responsibility and
Environmental Management
Environmental protection is no longer a
buzz word, but rather a necessity and is
an increasingly important part of doing
business
Maintaining economic growth while
balancing the protection of the
environment has become a major concern
for businesses worldwide
Social Responsibility and
Environmental Management
Organizations that have formed to address this
problem include:
•
•
•
•
The Organization for Cooperation & Development
The United Nations
The European Union
Other international activist groups
Many organizations and governmental agencies
are governed by a concept called “sustainable
development”
• Seek economic growth with “wise resource management,
equitable distribution of benefits and reduction of
negative efforts on people and environment…”
• Crossing Borders 3.6 pg. 70 – “Garbage without a
country”
Resources
The availability of natural resources has in
impact on economic growth
Petroleum is one of the most import resources
that nations need to supply energy, power,
transportation…
• Most countries are not self-sufficient, this becomes one
of the most important imports and has a major impact
on a country’s trade deficit or surplus.
• Global interdependence of energy resources is
increasingly important and has incredible political power
• See World Energy Consumption - Exhibit 3.3 pg. 72
World Population Trends
Consider the growth and decline of
populations throughout the world and the
effect it has on supply and demand of
products and services
Population increasing in under-developed
countries vs. population decreasing in developed
countries
Consider the effect an aging population has
on a country’s economy and ability to provide
for older generations
Japan example
World Population Trends
Population Control
Moral issue, political issue, or economic
issue?
Prerequisites to population control include:
• Adequate incomes, higher literacy levels,
education for women, universal access to
health care, family planning, improved
nutrition, and most critical a change in cultural
beliefs and values
Worker Shortage & Immigration
A balance is needed between countries that
are facing explosive populations (lessdeveloped countries) and worker shortages
that will face declining population growth
areas (developed countries)
Consider Mexico and the U.S.
• What opportunities and challenges will both face with
immigrants coming to the U.S. from Mexico?
World Trade Routes &
Communication Links
World Trade Routes
Developed to overcome economic
challenges and imbalances created by the
geography of the country
Communication Links
The method by which countries use
communication channels to facilitate trade
• Telephone, satellites, computer, internet