HISTORY AND GEOGRAPHY: The Foundations of Cultural Understanding

1
HISTORY AND GEOGRAPHY The Foundations of
Cultural Understanding

• Chapter 3

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HISTORICAL PERSPECTIVE IN GLOBAL BUSINESS

• Understanding a countrys 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

3
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

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GEOGRAPHY AND GLOBAL MARKETING

• Effects that Climate Topography have on
  International Marketing
• Physical barriers effect the countrys 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)

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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

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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

7
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

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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

9
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 countrys 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

10
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
  countrys economy and ability to provide for
  older generations
• Japan example

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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

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Worker Shortage Immigration

• A balance is needed between countries that are
  facing explosive populations (less-developed
  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?

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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