Chapter 3 History and Geography: - PowerPoint Presentation

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Chapter 3History and Geography:The Foundations of Culture

International Marketing

15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

McGraw-Hill/Irwin

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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Introduction

To understand a society’s actions and its points of view, you need to appreciate:The influence of historical events The geographical uniqueness to which a culture has had to adaptCulture can be defined as society's accepted basis for responding to external and internal eventsTo interpret a culture’s behavior and attitudes, a marketer must have some idea of a country’s history and geography

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Overview

Historical perspective in global businessGeography and global marketsClimate and topography, geography, nature, and economic growth, social responsibility and environmental management, and resourcesDynamics of global population trendsControlling population growth, rural/urban migration, population decline and aging, and worker shortage and immigrationWorld trade routesCommunication links

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Global PerspectiveBirth of a Nation – Panama in 67 Hours

History and geography can affect public and political attitudes of a nation in the present and far into the futureThe Panama Canal is but one example of the many U.S. intrusions during the early 20th century that have tainted U.S. - Latin American relationshipsA Chinese-company has operational control of both the Pacific and Atlantic ports making the control of the Canal a sensitive issue

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Panama Canal

www.pancanal.com

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History Perspective in Global Business

History helps define a nation’s missionHow it perceives its neighborsHow it perceives itselfIts place in the worldInsights into history are important for understanding current attitudesIt is necessary to study culture as it is now as well as to understand culture as it wasA country’s history

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History and Contemporary Behavior

Japanese historySeven centuries under the shogun feudal systemThe isolation before the coming of Admiral Perry in 1853Threat of domination by colonial powersRise of new social classesWestern influencesHumiliation of World War IIInvolvement in the international communityHistorically, loyalty and service, a sense of responsibility, and respect for discipline, training, and artistry were stressed to maintain stability and orderA historical perspective gives the foreigner a basis on which to begin developing cultural sensitivity and a better understanding of contemporary Japanese behavior

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History is Subjective

Historical events always are viewed from one’s own biases and SRCA crucial element in understanding any nation’s business and political culture is the subjective perception of its historyRelationship between U.S. and MexicoMonroe Doctrine

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Territorial Expansion of United States from 1783

Exhibit 3.1

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Manifest Destiny and the Monroe Doctrine

Both accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuriesManifest Destiny justified U.S. expansionAnnexation of Texas, Oregon, New Mexico, and California U.S. involvement in Cuba, Alaska, Hawaii, and the PhilippinesThree basic dicta of the Monroe DoctrineNo further European colonization in the New WorldAbstention of the U.S. from European political affairsNonintervention of European governments in the governments of the Western HemisphereChange in the Monroe Doctrine1881 – Roosevelt Corollary

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U.S. Intervention in Latin America Since 1945

Exhibit 3.2

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Geography and Global Markets

Geography – an element of the uncontrollable environment that confronts every marketerAffects a society’s culture and economy Physical makeup limits a nation’s ability to supply its people’s needs

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Climate and Topography

Altitude, humidity, and temperature extremesSouth AmericaBritish resistance of the English ChannelTrade through the Alps

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http://www.msnbc.msn.com/id/19248748/

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Geography, Nature and Economic Growth

As countries prosper, natural barriers are overcomeEnvironmental issuesDisruption of ecosystemsRelocation of peopleInadequate hazardous waste managementIndustrial pollution

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Social Responsibility and Environmental Management

Environmental protection is not an optional extraPollution is on the verge of getting completely out of controlChina has 16 of the world’s 20 most polluted citiesCritical issue: the disposal of hazardous wasteSustainable developmenthttp://www.time.com/time/specials/2007/0,28757,1661031,00.html http://www.forbes.com/2006/03/21/americas-most-polluted-cities-cx_rm_0321pollute.html

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A Comparison of Green-House Gas Emission Rates and Pledges for Reductions

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Exhibit 3.3

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Resources (1 of 2)

The availability of minerals and the ability to generate energy are the foundations of modern technologyThe principal supplements to human energy AnimalsWoodFossil fuelNuclear powerOcean tidesGeothermal powerThe sun

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Resources (2 of 2)

United States in perspective1942 – nearly self-sufficient1950 – major importer1973-2000 – increased dependency from 36% to 66%Mid-2000’s – predicted to be importing more than 70% of needsThe location, quality, and availability of resources will affect the pattern of world economic development and trade well into the 21st century

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World Energy Consumption

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Exhibit 3.4

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World Energy Consumption

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Exhibit 3.4

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Dynamics of GlobalPopulation Trends

Global population trends determine today’s demand for goodsRural/urban population shiftsRates of growthAge levelsPopulation controlChanges in population will profoundly affect future demandThe most important deterrent to population control is cultural attitudes about the importance of large families

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World Population by Region – 2005-2050Life Expectancy at Birth – 2005-2010 (millions)

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Exhibit 3.5

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Controlling Population Growth

Procreation is one of the most culturally sensitive uncontrollable factorsPerhaps the most important deterrent to population control is cultural attitudes about the importance of large familiesFamily planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a decline in the fertility rate is a function of economic prosperity and will come only with economic development

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Rural/Urban Migration

Result of a desire for greater access to:Sources of educationHealth careImproved job opportunities

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Population Decline and Aging

Population growth in many countries has dropped below the rate necessary to maintain present levelsA nation needs a fertility rate of about 2.1 children per womanNot one major country has sufficient internal population growth to maintain itself

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Age Density for World and Selected Countries

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Exhibit 3.6

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Worker Shortage and Immigration

The free flow of immigration will help to ameliorate the dual problems of explosive population expansion in less-developed countries and worker shortage in industrialized regionsEurope will need 1.4 billion immigrants over the next 50 yearsJapan and the U.S. will need 600 million immigrants between now and 2050

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World Trade Routes

Progression of trade routesOverlandSea routesAir routesThe InternetTrade routes bind world together, minimizing:DistanceNatural barriers Lack of resources Fundamental differences between and economiesTrade routes represent attempts to overcome influence of geography causing economic and social imbalances

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Telegraph

Communication Links

Computer

Internet

Television

Satellites

Telephone

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Summary (1 of 2)

A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differencesGeographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution

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Summary (2 of 2)

Without a historical understanding of a culture, the attitudes within the marketplace may not be fully understoodThe study of history and geography is needed to provide the marketer with an understanding of why a country has developed as it has rather than as a guide for adapting marketing plans

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