Professional Documents
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CH 3 International Marketing (Geography) 1
CH 3 International Marketing (Geography) 1
16th edition
Chapter 3
Roy Philip 2
Overview 3
in Global Business
• History helps define a nation’s mission
– How it perceives its neighbors
– How it perceives itself
– Its place in the world
• Insights into history are important for
understanding current attitudes
• It is necessary to study culture as it is now as
well as to understand culture as it was
– A country’s history
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International Marketing
16th edition
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
History and 3
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 a basis on which to
begin developing cultural sensitivity and a better
understanding of contemporary Japanese behavior
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3
Case in Point: Japan
• 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?
• Why are they loyal to family, to country,
to company, and to social group?
History is Subjective 3
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Territorial Expansion 3
of United States from 1783
Exhibit 3.1
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U.S. Intervention 3
in Latin America Since 1945
Exhibit 3.2
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Geography and Global 3
Markets
• Geography – an element of the uncontrollable
environment that confronts every marketer
– Affects a society’s culture and economy
– Physical makeup limits a nation’s ability to supply
its people’s needs
Roy Philip 11
International Marketing
16th edition
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Climate and Topography 3
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Climate and Topography
Knowledge about geography, the
climate and physical terrain when
appraising a market
3-14
Climate and Topography
Products may require special cooling or
lubrication to function adequately in
tropical zones
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Social Responsibility 3
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
• The World’s 10 Most Polluted Places
• America’s Most Polluted Cities
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A Comparison of Green-House Gas
3
Emission Rates and Pledges for
Reductions
Exhibit 3.3
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Resources (1 of 2) 3
Exhibit 3.4
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Dynamics of Global 3
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 control
is cultural attitudes about the importance of large
families
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World Population by Region – 2005-2050
3
Life Expectancy at Birth – 2005-2010
(millions)
Exhibit 3.5
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World Population by Region – 2005-2050
3
Life Expectancy at Birth – 2005-2010
(millions)
Exhibit 3.5
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International Marketing
16th edition
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Controlling 3
Population Growth
• Procreation is one of the most culturally
sensitive uncontrollable factors
• Perhaps the most important deterrent to
population control is cultural attitudes about the
importance of large families
• Family planning and all that it entails is by far
the most universal means governments use to
control birthrates, but some economists believe
that a decline in the fertility rate is a function of
economic prosperity and will come only with
economic development
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3
Population Control Issues
• Adequate Incomes
• High literacy levels
• Education for women
• Health care
• Family planning
• Cultural attitudes
• Political reasons
Rural/Urban Migration 3
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3
Population Decline and Aging
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Age Density for World 3
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Worker Shortage 3
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
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World Trade Routes 3
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International Marketing
16th edition
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Communication Links 3
Telegraph Telephone
Television Satellites
Computer Internet
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Summary (2 of 2) 3
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