This chapter discusses how history, geography, and the environment shape culture and business practices globally. It explains that understanding a country's history is important for comprehending attitudes towards government, management styles, and views of foreign companies. Additionally, it emphasizes that geography influences economic development and that sustainable development requires balancing economic growth with environmental protection. Population trends, trade routes, and natural resources are also discussed as important geographic factors for global business.

1. CHAPTER 3
History and Geography:
The Foundations of Culture

2. History of nations
• Pakistan
• Bangladesh
• Russia
• Iraq
• Afghanistan
• Sikkim
• Nepal

3. Historical Perspective in
Global Business
Historical insights of a country are
important for understanding:
 Attitudes about the role of
government and business
 Relations between Managers and
Subordinates
 Sources of Management Authority
 Attitudes toward Foreign
Corporations

4. History and Contemporary Behavior
 Historical events between nations influence
business and history
 Why do the Japanese have such strong
loyalty toward their companies?
 Why is a distribution system so difficult for
an outsider to develop?
 Why are decisions made by consensus?

5. History and Cont. Behavior Cont.
 Why are the Japanese loyal to family, to
country, to company, and to social group?
 Why do the Japanese cooperate?
 Answers found in Japanese history and
Confucian philosophy: Jen:
love, benevolent, concerns for one’s fellow
men; and Li: describes a combination of
manners, rituals, customs, etiquettes

6. History is subjective
 Manifest Destiny:
Meant that American were chosen people
to create a model society. It was used to
justify US annexation of Texas, Oregon,
New Mexico and California and later US
involvement in Cuba, Alaska, Hawaii and
Philippines

7. History is subjective
The Monroe Doctrine
Is a cornerstone of US foreign policy; was
enunciated by President James Monroe
1. No further European colonization in the New
World
2. Abstention of the US from European political
affair
3. Nonintervention of European governments in
governments of the Western Hemisphere

8. US Intervention in Latin America
• USA attempts to thwart election of Peron in
1946
• Popular revolution neutralized by US
economic pressure
• CIA organized invasion overthrows Arbenz
(1954)
• Nationalist revolution (1959) and alliance
with USSR (1960)

9. US Intervention in Latin America
• Covert intervention by USA against elected
Marxist government of Popular Unity (1970-73)
• Military intervention by USA against elected
Marxist government of popular unity
• Evolution (1979)USA funds counter
revolutionary movement (1980s)
• Covert intervention by USA to defeat left wing
guerrillas (1980 – 88)

10. US Intervention in Latin America
• US invasion to restore stable government
(1983)
• US invasion to arrest President Noriega on
charge of drug trafficking (1989)
• Negotiated US invasion to restore democracy
(1994)
• North American Free Trade Agreement
(NAFTA: !994)

11. Geography and Global Markets
 Study of geography is important in the
evaluation of markets
 Need to be knowledgeable about the effects
of geographic diversity on the economic
profiles of various nations
 Climate and topography are examined as
facets of the broader and more important
elements of geography

12. Climate and Topography
 Knowledge about geography, the climate and
physical terrain when appraising a market
 Influences marketing from product
adaptation to more profound influences on
the development of marketing systems
 Climatic features affect uses and functions of
products and equipment

13. Social Responsibility & Environmental
Management
 Firms required to be socially responsible
especially in foreign markets
 Firms should comply regulations against
environmental pollution and disposal of
hazardous waste
 Economic development and protection for the
environment can coexist
 Sustainable development guides many
governments and multinational companies today

14. Sustainable Development: Key
Propositions
 There is a crucial and potentially positive link
between economic development and the
environment
 The costs of inappropriate economic policies
on the environment are very high
 Addressing environmental problems requires
that poverty be reduced

15. Sustainable Development Cont.
 Economic growth must be guided by
prices that incorporate environmental
values
 Since environment problems pay no
respect to borders, global and regional
collaboration is sometimes needed to
complement national and regional regions

16. Natural Resources
 Importance of natural resources
especially to manufacturing of products
 Supply of natural resources not endless
 Human labor provides the
preponderance of energy in many
countries
 Importance of oil and gas in world
energy consumption

17. Global Population Trends
People constitute markets for various categories of
goods. Necessary to know about:
(1) rural/urban population shifts
(2) rates of growth
(3) age levels, and
(4) population control
(5) rural-urban migration of world population
(6) population decline and aging
(7) worker shortage and immigration

18. World Trade Routes and
Communication Links
 Knowledge about trade routes over land, sea,
and air important in making marketing decisions
 The majority of world trade is among the most
industrialized and industrializing countries of
Europe, North America, and Asia
 Need to be aware about communication links—
the underpinning of all commerce
 Impact of the Internet revolution especially for
global marketing of products