.Chapter

03

History and Geography:The Foundation of Culture

Modular:

Afjal HossainAssistant Professor, Department of Marketing

PSTUMcGraw-Hill/Irwin International Marketing, 13/e

Global PerspectiveBirth of a Nation – Panama in 67 Hours

• 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.

History and Contemporary Behavior• Japanese History:

– Seven centuries under the shogun feudal system– The isolation before the coming of Admiral Perry in 1853– Threat of domination by colonial powers– Rise of new social classes– Western influences– Humiliation of World War II– Involvement in the international community

• Historically, loyalty and service, a sense of responsibility, and respect for discipline, training, and artistry were stressed to maintain stability and order.

• A historical perspective gives the foreigner in Japan a basis on which to begin developing cultural sensitivity and a better understanding of contemporary Japanese behavior.

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.– Relationship between U.S. and Mexico

• Monroe Doctrine

Territorial Expansion of United States from 1783

• Insert Exhibit 3.1

Manifest Destiny and the Monroe Doctrine

• Both accepted as the basis for U.S. foreign policy during much of the 19th and 20th 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• Change in the Monroe Doctrine:

– 1881, Roosevelt Corollary

U.S. Intervention in Latin America Since 1945

• Insert Exhibit 3.2

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

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

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

Resources

• The availability of minerals and the ability to generate energy are the foundations of modern technology.

• The principal supplements to human energy are:– Animals– Wood– Fossil fuel– Nuclear power– Ocean tides– Geothermal power– The sun

Resources (continued)

• 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.

World Energy Consumption

• Insert Exhibit 3.3

Dynamics of Population Trends

• Controlling population growth– The most important deterrent to population control is

cultural attitudes about the importance of large families.• Rural/urban migration

– Result of a desire for greater access to sources of 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.– 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.

World Population by Region, 2005-2050, and Life Expectancy at Birth, 2005-2010 (millions)

• Insert Exhibit 3.4

Rural and Urban Population, 2005-2030 (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.

World Trade Routes• Progression of trade routes:

– Overland– Sea routes– Air routes– The Internet

• Trade routes among Europe, Asia and the Americas were well established by the 1500’s.

• Trade routes represent the attempts of countries to overcome economic and social imbalances created in part by the influence of geography.

500 Years of Trade

• Insert Exhibit 3.7

Communication Links

• Telegraph

• Telephone

• Television

• Satellites

• Computer

• Internet

Any Query?

Thanks…for staying with me…