History and Geography The Foundations of Culture

CHAPTER 3
Learning Objectives
• IMPORTANCE OF HISTORY AND GEOGRAPHY IN UNDERSTANING IM
• THE EFFECTS OF HISTORY ON A COUNTRY’S CULTURE
• THE EFFECT OF GEOGRAPHIC DIVERSITY ON ECONOMIC PROFILES OF A COUNTRY
• WHY MARKETS NEED TO BE RESPONSIVE TO GEOGRAPHY OF A COUNTRY
• COMMUNICATIONS ARE AN INTEGRAL PART OF INTERNATIONAL COMMERCE

CHAPTER 3
Historical Perspective in Global

Business
History helps define a nation “Mission”
It helps to understand:
• How it perceives it’s neighbours
• How it sees its place in the world
• How it sees itself
Knowing a nation history helps in understanding
• attitude about the role of government and business
• the relationship between the managers and the managed
• the sources of management authority
• attitudes toward foreign corporations
CHAPTER 3
History and Contemprory

Behavior
• Historical events between nations influence business and
history
James Day Hodgson, U.S. Labor secretary and Ambassador to
japan, suggested that anyone doing business in another country
should understand at least the encyclopedic version of the
people's past as a matter of politness, if not persuation.
CHINA VIGILANT OF
FOREIGN INFLUENCE
FIRST OPIUM WAR AND SECOND OPIUM WAR TAIPING REBELLION

THE TREATY OF (1857-1860) (1851-1864)
NANJING • British and French forces • Loss of confidence in the
(1839-1842) destroyed the summer palace in chinese government
• British traders forced a gateway Beijing
ino enophobicchina. • freedom for foreign traders
Understanding Japanese Behavior
Japanese went through
• seven centuries under the shogun feudal system
• isolation before the arrival of commodore perry in 1853
• threat of domination by colonial powers
• the rise of new social classes
• humiliation of World War II
Confucian philosophy
• emphasize the basic virtue of loyalty
• a fundamental premise of japanese ideology reflects the importance of
cooperation for the collective good
History is Subjective
" Subjective perception of its history is crucial in understanding a nations
business and political culture"
In US-Mexico relations, it presents two perception:
• Geography has mae us neighbors, traditions has made us friends

• Geography has made us cloer, traditions has made us apart
MANIFEST DESTINY AND
THE MONROE DOCTRINE
The basis of 19th and 20th century foreign policy:
MANIFEST DESTINY
The idea that the United States is destined—by God, its advocates believed—to
expand its dominion and spread democracy and capitalism across the entire North
American continent.
THE MONROE DOCTRINE

December 1823, the doctrine warns European nations that the United States would
not tolerate further colonization or puppet monarchs.
ROOSEVELT COROLLARY
• Foreign policy declaration by U.S. Pres. Theodore Roosevelt in 1904–
05
• It was a significant extension of Monroe doctrine rather than an
interpretation of it
• The corollary stated that not only were the nations of the Western
Hemisphere not open to colonization by European powers, but that
the United States had the responsibility to preserve order and protect
life and property in those countries
• 1903: the panama canal zone was accquired from columbia
• 1906: cuba was forced to accept the formation of provisional
government
Geography &Global Markets
Studying earth's surface, climate, resource &

its impact on economy
Geography & Global Markets
Geography is essential to study as it explains how a
society's culture and economy are affected due to a
country's limited physical makeup

Geography & Global Markets
A marketer must consider the geogrpahy and
environmental aspects of a country for efficient
marketing.
1. Climate
2. Topogrpahy
3. Earth's resources
4. Population are the most important facets in

geography.
Example
• Scinetists in Chungungo,installed "86 fog catchers" on a El Tofo hill top to duplicate water
bearing effect of trees.

• The result was the collection of 1900 gallons of water/day.
• Small-scale, cheap, and steady supply of water.
• Play-pump water systems in Sub-Saharan Africa, powered by children pump & merry-go round
for steady water supply.

CLIMATE & TOPOGRAPHY
Altitude
Humidity
Temperature extremes
Products that perform well in temperate zones may detriorate

rapidly or require special cooling lubrication to function
adequately in tropical zones.
CLIMATE & TOPOGRAPHY
• Within even a single national market climate can be
sufficiently diverse to require major adjustments.
• Different seasons between the northern and southern
hemispheres also affect global strategies.
• Mountains, oceans, seas, jungles and other geogrpahical
can pose serious impediments to economic growth and
trade.
Example
A Taiwanese company sent a shipment of drinking glasses to a

buyer in the Middle East. The glasses were packed in wooden
crates with hay used as a dunnage to prevent breakge. The
glasses arived in shards. Why?
When the crates moved to warmer, less humid climate of the

Middle East, the moisture content of the hay dropped
significantly and shriveled, hence it offered no protection.
Marveling in Machu Pichu?
This advertisment provides the only time we have seen a human vomitng to market a product.The
billboard appears in Lima, Peru, airport targeting tourists travelling from sea level to Cuzco & Machu
picchu. Cuzcu, the old inca capital is at more than 11,000 feet in altitude & many foriegn tourists
visting there suffer from this certain tourista.
Geography, Nature &
Economic Growth
Climate & Topography coupled with civil
wars, poor environmental policies & natural
disasters push countries into economic
stagnation.
Geography, Nature & Economic Growth
• Without irrigation & water managment, droughts, floods,

and soil erosion afflict them, often leading to creeping
deserts.
• Population increase, deforestation & overgrazing intensify
the impact of drought and lead to malnutrition & ill health.
• Cyclones cannot be prevented, nor can inadequate rainfall
but means to control their effects are available.
FLOOD IN
YANGTZE RIVER,
CHINA
THE FLOOD CAPTURED PEOPLE'S HOMES,
FARMING LANDS, AND INUNDATED THEIR
CROPS CAUSING DEVASATION AT A HUGE
SCALE.

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CHAPTER 3

• THE EFFECTS OF HISTORY ON A COUNTRY’S CULTURE

• THE EFFECT OF GEOGRAPHIC DIVERSITY ON ECONOMIC PROFILES OF A COUNTRY

• WHY MARKETS NEED TO BE RESPONSIVE TO GEOGRAPHY OF A COUNTRY

• COMMUNICATIONS ARE AN INTEGRAL PART OF INTERNATIONAL COMMERCE

Historical Perspective in Global

History and Contemprory

FIRST OPIUM WAR AND SECOND OPIUM WAR TAIPING REBELLION

In US-Mexico relations, it presents two perception:

• Geography has mae us neighbors, traditions has made us friends

The basis of 19th and 20th century foreign policy:

THE MONROE DOCTRINE

Studying earth's surface, climate, resource &

Geography is essential to study as it explains how a

society's culture and economy are affected due to a

country's limited physical makeup

environmental aspects of a country for efficient

4. Population are the most important facets in

bearing effect of trees.

for steady water supply.

Products that perform well in temperate zones may detriorate

A Taiwanese company sent a shipment of drinking glasses to a

When the crates moved to warmer, less humid climate of the

• Without irrigation & water managment, droughts, floods,

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