History and Geography: The Foundations of Culture

Chapter 3

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Historical Perspective In Global Business

Historical insights of a country are important for understanding:Historical insights of a country are important for understanding:

Attitudes about the role of government and businessAttitudes about the role of government and business

Relations between Managers and SubordinatesRelations between Managers and Subordinates

Sources of Management AuthoritySources of Management Authority

Attitudes toward Foreign CorporationsAttitudes toward Foreign Corporations

History and Contemporary Behavior

History helps define a nation’s “mission”, how it perceives it neighbors, and how it sees its place in the world.

History helps define a nation’s “mission”, how it perceives it neighbors, and how it sees its place in the world.

Historical events between nations influence business and history.

Historical events between nations influence business and history.

History is subjective (there are two sides toevery story).

History is subjective (there are two sides toevery story).

To understand a country’s attitudes, prejudices, and fears, it is necessary tolook beyond the surface of current events to the inner subtleties of the country’s entire past for clues.

To understand a country’s attitudes, prejudices, and fears, it is necessary tolook beyond the surface of current events to the inner subtleties of the country’s entire past for clues.

Geography and Global Markets

Study of geography is important in theevaluation of markets.Study of geography is important in theevaluation of markets.

Need to be knowledgeable about the effects ofgeographic diversity on the economic profilesof various nations.

Need to be knowledgeable about the effects ofgeographic diversity on the economic profilesof various nations.

Climate and topography are examined as facetsof the broader and more important elements ofgeography.

Climate and topography are examined as facetsof the broader and more important elements ofgeography.

Climate and Topography

Knowledge about geography, the climate and physical terrain is helpful when appraising a market.

Knowledge about geography, the climate and physical terrain is helpful when appraising a market.

They influence marketing from product adaptation to more profound influences on the development of marketing systems.

They influence marketing from product adaptation to more profound influences on the development of marketing systems.

Climatic and terrain conditions affect uses and functions of products and equipment, as well as distribution.

Climatic and terrain conditions affect uses and functions of products and equipment, as well as distribution.

Geography, Nature, and Economic Growth

Landlocked countries tend to have lower levels of economic development.Landlocked countries tend to have lower levels of economic development.

Countries with hostile climates are associated with economic stagnation.Countries with hostile climates are associated with economic stagnation.

Countries that suffer the most from major calamities are among the poorest in the world, which influences ability to market products.

Countries that suffer the most from major calamities are among the poorest in the world, which influences ability to market products.

Linkage exists between geographic location and economic growth.Linkage exists between geographic location and economic growth.

Social Responsibility & Environmental Management

Firms should comply with regulations against environmental pollution and disposal of hazardous waste.

Firms should comply with regulations against environmental pollution and disposal of hazardous waste.

Sustainable development guides many governments and multinational companies today.

Sustainable development guides many governments and multinational companies today.

Economic development and protection for the environment can coexist.Economic development and protection for the environment can coexist.

Firms are required to be socially responsible, especially in foreign markets.Firms are required to be socially responsible, especially in foreign markets.

Sustainable Development: Key Propositions

Since environment problems pay no respect to borders, global and regional collaboration is sometimes needed to complement national and regional regions.

Since environment problems pay no respect to borders, global and regional collaboration is sometimes needed to complement national and regional regions.

There is a crucial and potentially positive link between economic development and the environment.

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.The costs of inappropriate economic policies on the environment are very high.

Addressing environmental problems requires that poverty be reduced.Addressing environmental problems requires that poverty be reduced.

Economic growth must be guided by policies that incorporate environmental values.Economic growth must be guided by policies that incorporate environmental values.

Global Population Trends

It is important to know about currentpopulation trends because peopleconstitute markets for variouscategories of goods.

It is important to know about currentpopulation trends because peopleconstitute markets for variouscategories of goods.

Necessary to know about:

(1) rural/urban population shifts

(2) rates of growth

(3) age levels

(4) population control

(5) rural-urban migration of world population

(6) population decline and aging

(7) worker shortage and immigration

World Population by Region

Rural and Urban Population

Age Density

World Trade

• The majority of world trade is among the most industrialized and industrializing countries of Europe, North America, and Asia.