UBI-GM-Presentation03.050112-histry-geogrphy potx

• June 1902 US offers $ 10m to Colombia; offer refused • Oct 17, 1902, Agreement with Panamanian dissidents to stage revolt • Oct 18: Flag, constitution and declaration of independence c

History and Geography: The Foundations of Culture

Chapter 3

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

PowerPoint presentation prepared by:

Alfred Lowey-Ball Associate Professor of Marketing UBI-United Business Institutes Brussels, Belgium

PANAMA—born in 67 hours

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

• June 1902 US offers $ 10m to Colombia; offer refused

• Oct 17, 1902, Agreement with Panamanian dissidents to stage revolt

• Oct 18: Flag, constitution and declaration of independence created

• Nov 3: Revolt begins, bribes paid to Colombian army not to fight

• Nov 6: US recognizes Panama

• Nov 18: Panama canal treaty signed, giving US 99 year lease

• Jan 1, 2000: Canal Zone returned to Panama

History & geography key to development of a culture

Chapter Learning Objectives

1 The Importance of History and Geography in

the Understanding of International Markets

1 The Importance of History and Geography in

the Understanding of International Markets

2 History and Contemporary Behavior

3 History is Subjective: USA/Mexican example

4 Manifest Destiny and Monroe Doctrine

Chapter Learning Objectives

5 Geography and Global Markets

6 Products and Marketing

7 Dynamics of Global Population Trends

8 Trade Routes and Industrialization

Historical Perspective In Global Business

Sources of Management Authority

Attitudes toward Foreign Corporations

History and Contemporary Behavior

1 Historical events between

nations influence business

and history

1 Historical events between

nations influence business

and history

2 Why do the Japanese

have such strong loyalty toward their companies?

2 Why do the Japanese

have such strong loyalty toward their companies?

History and Contemporary Behavior

5 Why are the Japanese

8 In short, any nation’s

business and political culture is shaped by history

8 In short, any nation’s

business and political culture is shaped by history

History is subjective

Historical events viewed through own biases and SRCDiffering US/Mexico views of the Mexican war of 1848Manifest Destiny/Monroe Doctrine/Roosevelt corollaryHistory of US interventions in Latin America

Similar illustrations can be found throughout the world

Iraq: US vs rest of worldIsrael/Palestine

Vietnam conflictsLingering tensions inside Europe about WWII

Geography and Global Markets

Study of geography is important in the

Climate and topography are examined as facets

of the broader and more important elements ofgeography

Climate and topography are examined as facets

of the broader and more important elements ofgeography

Climate and Topography

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

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

Influences marketing from product adaptation

to more profound influences on the

development of marketing systems

Influences marketing from product adaptation

to more profound influences on the

development of marketing systems

Climatic features affect uses and functions of products and equipment

Climatic features affect uses and functions of products and equipment

Climate and Topography

Products may require special cooling or

lubrication to function adequately in tropical zones

Products may require special cooling or

lubrication to function adequately in tropical zones

Climate differences in Europe caused Siemens to alter its washing machines:

Geographic terrain influences logistics:

Chunnel UK/France, Oresund link,

Messina bridgeMountains: Bogotá to Medellín by road

takes 10 to 12 hours

Geographic terrain influences logistics:

Chunnel UK/France, Oresund link,

Messina bridgeMountains: Bogotá to Medellín by road

takes 10 to 12 hours

Geography, Nature, and Economic Growth

Association between landlocked countries and level of economic development

Association between landlocked countries and level of economic development

Countries with hostile climates associated with economic stagnation

Countries with hostile climates 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 between geographic location and economic growth

Linkage 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 marketsFirms 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

Natural Resources

Supply of natural resources not endless

Importance of oil and gas in world energyconsumption

Importance of oil and gas in world energyconsumption

Human labor provides the preponderance

of energy in many countries

Human labor provides the preponderance

of energy in many countries

Availability of natural resources and

sources of energy are the foundation of technological development and

business (especially manufacturing)

Availability of natural resources and

sources of energy are the foundation of technological development and

business (especially manufacturing)

World Energy Consumption

Global Population Trends

Important to know about current

population trends because people

constitute markets for various

categories of goods

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

World Population by Region

Rural/Urban Population Split

Age Distribution

World Trade Routes and

Communication Links

• Knowledge about trade routes over land, sea, and air important in making marketing decisions

• The majority of world trade is among the most industrialized and industrializing

countries of Europe, North America, and Asia

• Need to be aware about communication links—the underpinning of all commerce

• Impact of the Internet revolution especially for global marketing of products

TRADE ROUTES

The Triad: Trade Between the United States and Canada,

the European Community, and Japan ($ billions)

EUROPEAN COMMUNITY

UNITED STATES

For additional figures see: “Indicators of Market Size for 115 Countries I”

Crossborder Monitor, August, 1997, pp.4-8

91.5 141.7