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 2. History and Contemporary Behavior 3. History is Subjective: USA/Mexican example 3. History is Subjective: USA/Mexican example 4. Manifest Destiny and Monroe Doctrine 4. Manifest Destiny and Monroe Doctrine Chapter Learning Objectives 5. Geography and Global Markets 5. Geography and Global Markets 6. Products and Marketing 6. Products and Marketing 7. Dynamics of Global Population Trends 7. Dynamics of Global Population Trends 8. Trade Routes and Industrialization 8. Trade Routes and Industrialization Historical Perspective In Global Business Key to understanding: Key to understanding: Attitudes about the role of government and business Attitudes about the role of government and business Relations between Managers and Subordinates Relations between Managers and Subordinates Sources of Management Authority Sources of Management Authority Attitudes toward Foreign Corporations 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? 3. Why is a distribution system so difficult for an outsider to develop? 3. Why is a distribution system so difficult for an outsider to develop? 4. Why are decisions made by consensus? 4. Why are decisions made by consensus? History and Contemporary Behavior 5. Why are the Japanese loyal to family, to country, to company, and to social group? 5. Why are the Japanese loyal to family, to country, to company, and to social group? 6. Why do the Japanese cooperate? 6. Why do the Japanese cooperate? 7. Answers found in Japanese history and Confucian philosophy in which loyalty is to country 7. Answers found in Japanese history and Confucian philosophy in which loyalty is to country 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 SRC Differing US/Mexico views of the Mexican war of 1848 Manifest Destiny/Monroe Doctrine/Roosevelt corollary History of US interventions in Latin America Similar illustrations can be found throughout the world Iraq: US vs rest of world Israel/Palestine Vietnam conflicts Lingering tensions inside Europe about WWII 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 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