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History and GeographyThe Foundations of Culture
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Learning Objectives
• The importance of history and geography in the understanding of international markets
• The effects of history on a country’s culture• How culture interprets events through its own eyes• How the United States moved west and how this more affected
attitudes• The effect of geographic diversity on economic profiles of a
country• Why markets need to be responsive to geography of a country• Economic effects of controlling population growth versus aging
population• Communications are an integral part of international commerce
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Territorial Expansion of United States from 1783
• Insert Exhibit 3.1
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U.S. Intervention in Latin America Since 1945
• Insert Exhibit 3.2
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World Energy Consumption
Percentage of World Energy Consumption by Energy Source
38%
24%
24%
7%7%
Oil
Gas
Coal
Nuclear
Hydro/Other
3 - 15
World Energy Consumption
Total World Energy Consumption by Region and Fuel (Quadrillion BTUs)
0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0
Africa
Middle East
South America
Industrialized Asia
Eastern Europe/FSU
Europe
Developing Asia
North America
Oil Gas Coal Nuclear Hydro/Other
115.7QBTUs
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Dynamics of Population Trends
• Controlling population growth- The most important deterrent to population control is cultural
attitudes about the importance of large families.
• Rural/urban migration- Result of a desire for greater access to sources of education, health
care, and improved job opportunities.
• Population decline and aging- Population growth in many countries has dropped below the rate
necessary to maintain present levels.- A nation needs a fertility rate of about 2.1 children per woman.- Not one major country has sufficient internal population growth to
maintain itself.
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World Population by Region, 2005-2050, and Life Expectancy at Birth, 2005-2010 (millions)
• Insert Exhibit 3.4
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Rural and Urban Population, 2005-2030 (millions)
• Insert Exhibit 3.5
3 - 20
World Trade Routes
• Progression of trade routes:- Overland- Sea routes- Air routes- The Internet
• Trade routes among Europe, Asia and the Americas were well established by the 1500’s.
• Trade routes represent the attempts of countries to overcome economic and social imbalances created in part by the influence of geography.
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Communication Links
• Telegraph• Telephone• Television• Satellites• Computer• Internet
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Summary
• A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences.
• Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution.
• Without a historical understanding of a culture, the attitudes within the marketplace may not be fully understood.
• The 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.