Chapter 3 - History and Geography: The foundations of culture. Geography and history in chapter 3 are included as important dimensions in understanding cultural and market differences among countries. Not to be overlooked is concern for the deterioration of the global ecological environment and the multinational company’s critical responsibility to protect it.
International Marketi ng 14th Edition P h i l i p R C a t e o r a M a r y C G i l l y John L Graham History and Geography: The Foundations of Culture Chapter McGrawưHill/Irwin InternationalMarketing14/e Copyrightâ2009byTheMcGrawưHillCompanies,Inc.Allrightsreserved Geography and Global Markets Geography – an element of the uncontrollable environment that confronts every marketer – Affects a society’s culture and economy – Physical makeup limits a nation’s ability to supply its people’s needs 3-2 Climate and Topography • Altitude, humidity, and temperature extremes – South America – British resistance of the English Channel – Trade through the Alps 3-3 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 3-4 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 3-5 Resources • The availability of minerals and the ability to generate energy are the foundations of modern technology • The principal supplements to human energy – – – – – – – Animals Wood Fossil fuel Nuclear power Ocean tides Geothermal power The sun 3-6 Resources • United States in perspective – – – – 1942 – nearly self-sufficient 1950 – major importer 1973-2000 – increased dependency from 36% to 66% Mid-2000’s – predicted to be importing more than 70% of needs • The location, quality, and availability of resources will affect the pattern of world economic development and trade well into the 21st century 3-7 World Energy Consumption Exhibit 3.3a 3-8 World Energy Consumption Exhibit 3.3b 3-9 Dynamics of Population Trends • Global population trends determine today’s demand for goods – – – – Rural/urban population shifts Rates of growth Age levels Population control • Changes in population will profoundly affect future demand • The most important deterrent to population control is cultural attitudes about the importance of large families 3-10 World Population by Region – 2005-2050 Life Expectancy at Birth – 2005-2010 (millions) Exhibit 3.4 3-11 Rural/Urban Migration • Result of a desire for greater access to: – Sources of education – Health care – Improved job opportunities 3-12 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 3-13 Age Density for World and Selected Countries Exhibit 3.5 3-14 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 3-15 500 Years of Trade Exhibit 3.6a 3-16 500 Years of Trade Exhibit 3.6b 3-17 World Trade Routes • Progression of trade routes – – – – Overland Sea routes Air routes The Internet • Trade routes bind world together, minimizing: – – – – Distance Natural barriers Lack of resources Fundamental differences between and economies • Trade routes represent attempts to overcome influence of geography – Causing economic and social imbalances 3-18 Communication Links • Telegraph • Telephone • Television • Satellites • Computer • Internet 3-19 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 3-20 Summary • 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 3-21 ... economic development and trade well into the 21st century 3- 7 World Energy Consumption Exhibit 3. 3a 3- 8 World Energy Consumption Exhibit 3. 3b 3- 9 Dynamics of Population Trends • Global population... U.S will need 600 million immigrants between now and 2050 3- 1 5 500 Years of Trade Exhibit 3. 6a 3- 1 6 500 Years of Trade Exhibit 3. 6b 3- 1 7 World Trade Routes • Progression of trade routes – – –... attitudes about the importance of large families 3- 1 0 World Population by Region – 200 5-2 050 Life Expectancy at Birth – 200 5-2 010 (millions) Exhibit 3. 4 3- 1 1 Rural/Urban Migration • Result of a desire