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: Attitudes about the role of government and business Relations between Managers and Subordinates Relations between Managers and Subordinates Sources of Management Authority Attitudes 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. Historical events between nations influence business and history. History is subjective (there are two sides to every story). History is subjective (there are two sides to every story). To understand a country’s attitudes, prejudices, and fears, it is necessary to look 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 to look 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 the evaluation of markets. Study of geography is important in the evaluation of markets. Need to be knowledgeable about the effects of geographic diversity on the economic profiles of various nations. Need to be knowledgeable about the effects of geographic diversity on the economic profiles of various nations. Climate and topography are examined as facets of the broader and more important elements of geography. Climate and topography are examined as facets of the broader and more important elements of geography.
Climate and Topography 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. 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. 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. 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. Sustainable development guides many governments and multinational companies today. Economic development and protection for the environment can coexist. 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. 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. Addressing environmental problems requires that poverty be reduced. Economic growth must be guided by policies that incorporate environmental values.
Global Population Trends It is important to know about current population trends because people constitute markets for various categories of goods. It is important to know about current population trends because people constitute markets for various categories 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.