I n t e r n a t i o n a l M a r k e t i n g
I n t e r n a t i o n a l M a r k e t i n g
History and Geography:
The Foundations
of Culture
Chapter 3
Geography and Global Markets
Geography and Global Markets
• Geography – an element of the uncontrollable
environment that confronts every marketer – Affects a society’s culture and economy
Climate and Topography
Climate and Topography
• Altitude, humidity, and temperature extremes
– South America
– British resistance of the English Channel
Geography, Nature
and Economic Growth
Geography, Nature
and Economic Growth
• As countries prosper, natural barriers are
overcome
• Environmental issues
– Disruption of ecosystems
– Relocation of people
– Inadequate hazardous waste management
Social Responsibility
and Environmental Management
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
Resources
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
Resources
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
World Energy Consumption
World Energy Consumption
World Energy Consumption
World Energy Consumption
Dynamics of Population Trends
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
World Population by Region – 2005-2050
Life Expectancy at Birth – 2005-2010 (millions)
World Population by Region – 2005-2050
Life Expectancy at Birth – 2005-2010 (millions)
Rural/Urban Migration
Rural/Urban Migration
• Result of a desire for greater access to:
– Sources of education
– Health care
Population Decline and Aging
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
Age Density for World
and Selected Countries
Age Density for World
and Selected Countries
Worker Shortage and Immigration
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
500 Years of Trade
500 Years of Trade
500 Years of Trade
500 Years of Trade
World Trade Routes
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
Communication Links
Communication Links
Summary
Summary
• A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences
• Geographic hurdles must be recognized as
Summary
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
