Chapter3HistoryandGeography:TheFoundationsofCulture?McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.

NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.LearningObjectives1of23-1 Theimportanceofhistoryandgeographyinunderstandinginternationalmarkets3-2 Theeffectsofhistoryonacountry’sculture3-3 Howcultureinterpretseventsthroughitsowneyes3-4 Howlong-pastU.S.internationalpoliciesstillaffectcustomerattitudesabroadLearningObjectives2of23-5 Theeffectofgeographicdiversityoneconomicprofilesofacountry3-6 Whymarketersneedtoberesponsivetothegeographyofacountry3-7 Theeconomiceffectsofcontrollingpopulationgrowthandagingpopulations3-8 CommunicationinfrastructuresareanintegralpartofinternationalcommerceTheCulturalEnvironmentofGlobalMarketsCultureSociety’sacceptedbasisforrespondingtoexternalandinternaleventsInfluencedbyhistoricaleventsandgeographicaluniquenessHistoryandgeographyimpactbusinessHistoricalPerspectiveinGlobalBusinessHistoryHelpsdefineanation’s“mission,”howitperceivesitsneighbors,self,andplaceinworldStudyinganation’scultureincludesstudyingitshistoryHistoryandContemporaryBehavior1of3TraderelationsbetweenU.S.andAsiaThe1stOpiumWarandtheTreatyofNanjing(1839to1842)BritishtradersforcedagatewaythroughHongKongintoxenophobicChinaThe2ndOpiumWar(1857to1860)BritishandFrenchdestroyedsummerpalaceinBeijingMorefreedomforforeigntraders;ChristianevangelismHistoryandContemporaryBehavior2of3TraderelationsbetweenU.S.andAsiacontinuedTaipingRebellion(1851to1864)Chinesehumiliatedbyforeigners;lostconfidenceingovernment20to40millionChinesepeoplekilledinrebellionChineseleadersstillwaryofforeigninfluencesasresultHistoryandContemporaryBehavior3of3JapanesehistoryimpactsitsbusinessJapanwentthroughmanychangesthroughhistoryShogunfeudalsystem,threatofdominationbycolonialpowers,riseofsocialclasseshumiliationofWWIIJapanesebehaviorsandvaluesshapedbyhistoryConfucianphilosophyBasicvirtueofloyaltytosocialgroups,countryCooperationforthecollectivegoodHistoryIsSubjective1of2Importanttounderstandanynation’sbusinessandpoliticalcultureExemplifiedbyUnitedStates-MexicanRelationship“Geographyhasmadeusneighbors,traditionhasmadeusfriends.”–PresidentJohnF.Kennedy“Geographyhasmadeuscloser,traditionhasmadeusfarapart.”–Mexicans

Exhibit3.1TerritorialExpansionofUnitedStatesfrom1783TheUnitedStatesexpandedwestwardtothePacificthroughaseriesoffinancialdeals,negotiatedsettlements,andforcibleannexations.TheacquisitionofterritoryfromMexicobeganwiththeBattleofSanJacintoin1836,whenTexasstagedasuccessfulrevoltagainsttheruleofMexicoandbecameTheRepublicofTexas—latertojointheUnionin1845.TheMexicanWar(1846to1848)resultedinMexicocedingCaliforniaandalargepartoftheWesttotheUnitedStates.Jumptolongdescription.HistoryIsSubjective2of2BasisofU.S.foreignpolicyin19thand20thcenturiesManifestDestinyAmericansordainedbyGodtocreatemodelsocietyTheMonroeDoctrineNomoreEuropeaninvolvementinWesternHemisphereRooseveltCorollaryU.S.policedLatinAmericatoensureitmetobligationsU.S.perspective:justifiableinterventionsLatinAmericanperspective:unwantedintrusionsImpactscurrentbusinessrelationshipGeographyandGlobalMarkets1of6GeographyStudyofEarth’ssurface,climate,continents,countries,peoples,industries,andresourcesGeographyimposeslimitationsImpactssociety’scultureandeconomyAffectsnations’abilitytosupplycitizens’needsImportanttounderstandwhenevaluatingmarketpotentialGeographyandGlobalMarkets2of6ClimateandTopographyImpactsfunctionofproductsandequipment;requiresadjustmentsExtremesinaltitude,humidity,andtemperatureDifferentseasonsbetweennorthernandsouthernhemispheresClimatecanbediverseevenwithinsinglemarketGeographicalfeaturesimpedeeconomicgrowthandtradeMountains,oceans,seas,andjunglesGeographyandMarketingThisadvertisementprovidestheonlytimewehaveseenahumanvomitingtomarketaproduct.Theproductadvertisedtreatsaltitudesickness.ThebillboardappearsintheLima,Peru,airport,targetingtouriststravelingfromsealeveltoCuzcoandMachuPicchu(picturedinthescenicbackground).Cuzco,theoldIncacapital,isatmorethan11,000feetinaltitude,andmanyforeigntouristsvisitingtheresufferthisparticularsortoftourista.?JohnGrahamGeographyandGlobalMarkets3of6Geography,Nature,andEconomicGrowthManyfactorscanleadtoeconomicstagnationClimateandtopographycoupledwithcivilwars,poorenvironmentalpolicies,andnaturaldisastersExamplesPoorirrigationandwatermanagementcausesdroughts,floods,andsoilerosion,andultimatelycausescreepingdesertsPopulationincreases,deforestation,andovergrazingintensifyimpactofdroughtandleadtomalnutritionandillhealthGeographyandGlobalMarkets4of6SocialResponsibilityandEnvironmentalManagementEssentialpartofthecomplexprocessofdoingbusinessGlobalratherthananationalissueGreenhousegasemissionsThreatenshumansandtheenvironmentSustainabledevelopmentEconomicdevelopmentandenvironmentalprotectionExhibit3.3AComparisonofGreenhouse-GasEmissionRatesandPledgesforReductionsJumptolongdescription.Source:EuroMonitorInternational,2018;IntergovernmentalPanelonClimateChange.SustainableDevelopmentinS?oPauloHereinS?oPaulo,Shellsellstwokindsoffuel:alcoholmadeprimarilyfromsugarcaneandgasolinemadefromdirtierfossilfuels.Flexible-fuelenginesinBraziliancarscanburneitherkindoffueloranymixtureofthetwo.Althoughthepriceperliterisquitedifferent,soisthemileageperliter.Braziliansmaketheirchoiceoffuelbasedonthekindofdrivingtheyanticipate,cityversushighway.?JohnGrahamGeographyandGlobalMarkets5of6ResourcesAvailabilityofmineralsandabilitytogenerateenergyLocatedallaroundtheEarthDemanddoesnotnecessarilycoincidewithdomesticsupplyHumanlaborcreatesenergyinunderdevelopedworldHumanenergyissupplementedbyAnimals,wood,fossilfuels,nuclearpowerTolesserextent:ocean’stides,geothermalpower,thesunPetroleumdominantsource;easytostoreandtransportGeographyandGlobalMarkets6of6ResourcescontinuedManycountriesareinitiallyself-sufficientThosesamecountriesoftenbecomehighlydependentonpetroleumimportsWorldturningtorenewablesourcesofenergyWood,peat,dung,wind,solar,geothermalWilldevelopalongwithtechnologyWillimpactworldtradeandmarketingeffortsSourcesofEnergy?narvikk/GettyImagesThebest:Thereareatleastfoursourcesofrenewableenergypicturedhere.Whatarethey??JohnGrahamTheworst:Coalbeingloadedonatitanicship.Here,thetitanloadsanOlympus-sizedmountainofCanadiancoalnearVancouver.ShewillthenheadtoDangjin,SouthKorea,tofuelthenewestandmostefficientpowerplantsintheworldjustcompletedbySiemensandturnedovertothecustomer,aKoreanutility.Exhibit3.4WorldEnergyConsumptionJumptolongdescription.Source:BPEnergyOutlook2018,/en/global/corporate/energy-economics/energy-outlook.htmlUseofAlternativeFuelSources?JohnGrahamThisMasaiwomanofTanzaniaputtogoodusebothcowdungandurineinbuildingherhutpicturedhereinherfamilyvillage(orboma).Thesemi-nomadicMasaigrazetheircattleduringthedaybutenclosethemwithintheacaciabushbomaatnighttoprotectthemfrompredators.?JohnGrahamCattledung,whichisusedbothasfarmyardmanureand,driedintocakes,ashouseholdfuel,isbeingcarriedtoalocalmarketinIndia.India’scattleproduceenormousquantitiesofdung,whichsomestudiessuggestprovidetheequivalentof10,000megawattsofenergyannually.DynamicsofGlobalPopulationTrends1of6PopulationImpactsDemandCurrentestimate:morethan7.5billionpeopleProjectedby2050:about9.8billionAlmostallgrowthwilloccurinunderdevelopedregions85%ofpopulationwillbeconcentratedintheseregions1.2billionjobsmustbecreatedtoaccommodategrowthExhibit3.5WorldPopulationbyRegion,2017,2050(millions)Regions20172050World7,5509,550Africa1,2562,528Asia4,5045,256Europe742716LatinAmerica646780NorthernAmerica361435Oceania4157Source:WorldPopulationProspects,The2017Revision,UnitedNationsEconomicandSocialAffairs,,2018.MexicoisincludedinLatinAmerican,notNorthernAmerica.DynamicsofGlobalPopulationTrends2of6ControllingPopulationGrowthAdequateincomesHigherliteracylevelsEducationforwomenUniversalaccesstohealthcareFamilyplanningUniversallyusedbygovernmentstocontrolbirthratesImprovednutritionChangeinbeliefsaboutimportanceoflargefamilyProcreationisculturallysensitivefactor,uncontrollableDynamicsofGlobalPopulationTrends3of6Rural/UrbanMigrationPopulationgrowinginurbanareas3.5%in1800,61%by2030Peopledesiregreateraccesstoeducation,healthcare,jobsMostgrowthoccursineconomicallystrainedurbancitiesOverpopulationofunskilledworkersinslumsPutspressureonsanitationsystems,watersupplies,socialservicesMigrationonlyimprovesqualityoflifeforsomeDynamicsofGlobalPopulationTrends4of6PopulationDeclineOccurringindeveloped,industrializednationsBirthratesinEurope,Japandecreasingsince1960sMorewomenchoosingcareeroverchildrenCouplesaredecidingtoremainchildlessGrowthbelownecessaryleveltosustaincurrentpopulationDynamicsofGlobalPopulationTrends5of6AgingGloballifeexpectancyhasincreasedgreatlyinlast50yearsU.N.projectsdrasticincreaseinolderpopulationby205065to84years:3timesincrease85yearsandover:6timesincrease100yearsandover:16timesincreaseLeadstoeconomicstrainHighpensionandhealthcarecostsImbalancebetweenfundersandusersofSocialSecurityExhibit3.6AgeDensityforWorldandJapanJumptolongdescription.DynamicsofGlobalPopulationTrends6of6WorkerShortageandImmigrationImmigrationcanhelpglobalpopulationissuesMovefromunderdeveloped,overpopulatedregionsMovetoindustrializedregionswithworkershortageEuropewillneed1.4billionimmigrantsovernext50yearsJapanandU.S.willneed600millionimmigrantsby2050PoliticalandculturaloppositionabarrierImmigrantsfromSyriaacatalystfor2016BrexitvoteWorldTradeRoutesTraderouteslinkpeopleandeconomiesBindtheworldtogether;overcomedifferencesRepresentefforttoovercomeeconomicandsocialimbalancescreatedbygeography1500–traderoutesestablishedbetweenEurope,Asia,AmericasSametraderoutesremainimportanttodayThePanamaCanalTradeamongdevelopingnationsquicklygrowingTheImpactofClimateChangeonTradeRoutesClimatechangeopensupanewtraderoutethatmaycompetewiththePanamaCanal,cuttingcostlydaysoffthetraveltimebetweenWesternEuropeandAsia.HereaGermancommercialvesselfollowsaRussianicebreakerthroughtheproverbialNorthwestPassage.?EducationImages/UIG/GettyImagesCommunicationLinksCommunicationandTradeEssentialcomponentofinternationalcommerceKnowwheregoodsandservicesexistandwheretheyareneededTechnologyhasevolvedTelegraph,telephone,television,satellite,mobilephone,computer,InternetProfoundlyimpactsinternationalbusinessHumancondition,economicgrowth,functionsofcommerceAppendixofImageLongDescriptionsAppendix1Exhibit3.1TerritorialExpansionofUnitedStatesfrom1783TheUSclaimedterritoryinthenortheaststartingin1783andgainedcontrolofalmostallstateseastoftheMississippiRiverbytheearlytomid1800s.TheLouisianaPurchaseof1803expandedtheUnitedState’sterritoryfurtherWestacrossthirteenstates.TheUSannexedpartsofsouthernMississippiin1810and1813,andallofFloridawascededbySpainin1819.TheUSacquiredsometerritoriesfromBritain:thenorthernpartsofNorthDakotaandMississippiin1818,andthenortherntipofMainein1842.TheTexasannexationof1845gavetheUScontroloverTexasandportionsofOklahoma,NewMexico,Kansas,andColorado.OregonCountry,includingOregon,Washington,andIdaho,wasacquiredbytheUSin1846.California,Nevada,Utah,partsofColoradoandNewMexico,andthemajorityofArizonawascededbyMexicoin1848.TheUSobtainedthesouthernpartsofArizonaandNewMexicothroughtheGadsdenPurchasein1853.EachstatewasofficiallyadmittedtotheUSatdifferenttimesfromthelate1700stotheearly1900s.Generally,allstateseastoftheMississippiriverwereofficiallyadmittedbythemid1800s,andallstatestowestwereofficiallyadmittedinthelate1800sandearly1900s.Returntooriginalslide.Appendix2Exhibit3.3AComparisonofGreenhouse-GasEmissionRatesandPledgesforReductionsThefirstgraphshowsemissionsperpersonfor20countries.ThehighestemissionsarefromCanada,theU.S.,Russia,andSouthKorea.ThelowestemissionsarefromKenya,Philippines,India,andPeru.Thesecondgraphshowspledgedemission-reductiontargets.TheseareledbyChina,theU.S.,Russia,andIndia.ThecountrieswiththelowesttargetsareKenya,Peru,Sweden,a