3 - 1 Learning Objectives The importance of history and geography in 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 Communications are an integral part of international commerce

3 - 2 Global Perspective To fully understand a society’s actions and its points of view, you must have an appreciation for the influence of historical events and the geographical uniqueness to which a culture has had to adapt. To interpret a culture’s behavior and attitudes, a marketer must have some idea of a country’s history and geography. Culture is defined as a society’s accepted basis for responding to external and internal events.

3 - 3 History is Subjective Historical events always are viewed from one’s own biases and SRC. A crucial element in understanding any nation’s business and political culture is the subjective perception of its history.

3 - 4 Manifest Destiny and the Monroe Doctrine Both accepted as the basis for U.S. foreign policy during much of the 19 th and 20 th centuries. The idea of Manifest Destiny was used to justify U.S. annexation of Texas, Oregon, New Mexico, and California and later, U.S. involvement in Cuba, Alaska, Hawaii, and the Philippines. Three basic dicta of the Monroe Doctrine: -No further European colonization in the New World -Abstention of the U.S. from European political affairs -Nonintervention of European governments in the governments of the Western Hemisphere

3 - 5 Geography and Global Markets Understanding of how a society’s culture and economy are affected as a nation struggles to supply its people’s needs within the limits imposed by its physical makeup. Climate and Topography -Altitude, humidity, and temperature extremes South America British resistance of the English Channel Trade through the Alps

3 - 6 Geography, Nature and Economic Growth As countries prosper, natural barriers are overcome. Environmental issues: -Disruption of ecosystems -Relocation of people -Inadequate hazardous waste management -Industrial pollution

3 - 7 Social Responsibility and Environmental Management Environmental protection is not an optional extra Pollution is on the verge of getting completely out of control China has 16 of the world’s 20 most polluted cities Critical issue: the disposal of hazardous waste Sustainable development

3 - 8 World Energy Consumption Insert Exhibit 3.3

3 - 9 Dynamics of Population Trends Controlling population growth -A main deterrent to population control is cultural attitudes about the importance of large families. Rural/urban migration -Result of a desire for greater access to 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. -Not one major country has sufficient internal population growth to maintain itself.

World Population by Region, , and Life Expectancy at Birth, (millions) Insert Exhibit 3.4

Rural and Urban Population, (millions) Insert Exhibit 3.5

Dynamics of Population Trends (continued) 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 regions. -Europe will need 1.4 billion immigrants over the next 50 years. -Japan and the U.S. will need 600 million immigrants between now and 2050.

Years of Trade Insert Exhibit 3.7

Summary An 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, communications and distribution. Without an historical understanding of a culture, the attitudes within the marketplace may not be understood. The study of history and geography provides the marketer with an understanding of why a country has developed as it has.