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3HistoryandGeographyTheFoundationsofCultureMcGraw-Hill/IrwinInternationalMarketing,13/e©2007TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Chapter3-3ChapterLearningObjectives•Theimportanceofhistoryandgeographyintheunderstandingofinternationalmarkets•Theeffectsofhistoryonacountry’sculture•Howcultureinterpretseventsthroughitsowneyes•HowtheUnitedStatesmovedwestandhowthismoreaffectedattitudes•Theeffectofgeographicdiversityoneconomicprofilesofacountry•Whymarketsneedtoberesponsivetogeographyofacountry•Economiceffectsofcontrollingpopulationgrowthversusagingpopulation•Communicationsareanintegralpartofinternationalcommerce3-4GlobalPerspectiveBirthofaNation–Panamain67Hours•Tofullyunderstandasociety’sactionsanditspointsofview,youmusthaveanappreciationfortheinfluenceofhistoricaleventsandthegeographicaluniquenesstowhichaculturehashadtoadapt.•Tointerpretaculture’sbehaviorandattitudes,amarketermusthavesomeideaofacountry’shistoryandgeography.Cultureisdefinedasasociety’sacceptedbasisforrespondingtoexternalandinternalevents.3-5HistoryandContemporaryBehavior•JapaneseHistory:-Sevencenturiesundertheshogunfeudalsystem-TheisolationbeforethecomingofAdmiralPerryin1853-Threatofdominationbycolonialpowers-Riseofnewsocialclasses-Westerninfluences-HumiliationofWorldWarII-Involvementintheinternationalcommunity•Historically,loyaltyandservice,asenseofresponsibility,andrespectfordiscipline,training,andartistrywerestressedtomaintainstabilityandorder.•AhistoricalperspectivegivestheforeignerinJapanabasisonwhichtobegindevelopingculturalsensitivityandabetterunderstandingofcontemporaryJapanesebehavior.3-6HistoryisSubjective•Historicaleventsalwaysareviewedfromone’sownbiasesandSRC.•Acrucialelementinunderstandinganynation’sbusinessandpoliticalcultureisthesubjectiveperceptionofitshistory.-RelationshipbetweenU.S.andMexico•MonroeDoctrine3-7TerritorialExpansionofUnitedStatesfrom1783•InsertExhibit3.13-8ManifestDestinyandtheMonroeDoctrine•BothacceptedasthebasisforU.S.foreignpolicyduringmuchofthe19thand20thcenturies.•TheideaofManifestDestinywasusedtojustifyU.S.annexationofTexas,Oregon,NewMexico,andCaliforniaandlater,U.S.involvementinCuba,Alaska,Hawaii,andthePhilippines.•ThreebasicdictaoftheMonroeDoctrine:-NofurtherEuropeancolonizationintheNewWorld-AbstentionoftheU.S.fromEuropeanpoliticalaffairs-NoninterventionofEuropeangovernmentsinthegovernmentsoftheWesternHemisphere•ChangeintheMonroeDoctrine:-1881,RooseveltCorollary3-9U.S.InterventioninLatinAmericaSince1945•InsertExhibit3.23-10GeographyandGlobalMarkets•Understandingofhowasociety’scultureandeconomyareaffectedasanationstrugglestosupplyitspeople’sneedswithinthelimitsimposedbyitsphysicalmakeup.•ClimateandTopography-Altitude,humidity,andtemperatureextremes•SouthAmerica•BritishresistanceoftheEnglishChannel•TradethroughtheAlps3-11Geography,NatureandEconomicGrowth•Ascountriesprosper,naturalbarriersareovercome.•Environmentalissues:-Disruptionofecosystems-Relocationofpeople-Inadequatehazardouswastemanagement-Industrialpollution3-12SocialResponsibilityandEnvironmentalManagement•Environmentalprotectionisnotanoptionalextra•Pollutionisonthevergeofgettingcompletelyoutofcontrol•Chinahas16oftheworld’s20mostpollutedcities•Criticalissue:thedisposalofhazardouswaste•Sustainabledevelopment3-13Resources•Theavailabilityofmineralsandtheabilitytogenerateenergyarethefoundationsofmoderntechnology.•Theprincipalsupplementstohumanenergyare:-Animals-Wood-Fossilfuel-Nuclearpower-Oceantides-Geothermalpower-Thesun3-14Resources(continued)•UnitedStatesinPerspective-1942–nearlyself-sufficient-1950–majorimporter-1973-2000–increaseddependencyfrom36%to66%-Mid-2000’s–predictedtobeimportingmorethan70%ofneeds•Thelocation,quality,andavailabilityofresourceswillaffectthepatternofworldeconomicdevelopmentandtradewellintothe21stcentury.3-15WorldEnergyConsumption•InsertExhibit3.33-16DynamicsofPopulationTrends•Controllingpopulationgrowth-Themostimportantdeterrenttopopulationcontrolisculturalattitudesabouttheimportanceoflargefamilies.•Rural/urbanmigration-Resultofadesireforgreateraccesstosourcesofeducation,healthcare,andimprovedjobopportunities.•Populationdeclineandaging-Populationgrowthinmanycountrieshasdroppedbelowtheratenecessarytomaintainpresentlevels.-Anationneedsafertilityrateofabout2.1childrenperwoman.-Notonemajorcountryhassufficientinternalpopulationgrowthtomaintainitself.3-17WorldPopulationbyRegion,2005-2050,andLifeExpectancyatBirth,2005-2010(millions)•InsertExhibit3.43-18RuralandUrbanPopulation,2005-2030(millions)•InsertExhibit3.53-19DynamicsofPopulationTrends(continued)•WorkerShortageandImmigration-Thefreeflowofimmigrationwillhelptoamelioratethedualproblemsofexplosivepopulationexpansioninless-developedcountriesandworkershortageinindustrializedregions.-Europewillneed1.4billionimmigrantsoverthenext50years.-JapanandtheU.S.willneed600millionimmigrantsbetweennowand2050.3-20WorldTradeRoutes•Progressionoftraderoutes:-Overland-Searoutes-Airroutes-TheInternet•TraderoutesamongEurope,AsiaandtheAmericaswerewellestablishedbythe1500’s.•Traderoutesrepresentthe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