Chapter 07
Chapter 07
Chapter 07
Learning Objectives
Describe the role of location, topography, climate, and natural resources as factor conditions in Porters diamond model Explain how surface features contribute to economic, cultural, political, and social differences among nations and among regions of a single country Comprehend the importance of inland waterways and outlets to the sea Recognize that climate exerts a broad influence on business Understand the options available for nonrenewable and renewable energy sources Explain how factor conditions can impact innovation Describe environmental sustainability and its characteristics Draw on the stakeholder theory as a framework for environmental sustainability
7-3
Mostly mountainous Close to populated lowlands of Western Europe Transportation across mountains expensive Has no mineral resources
7-4
Natural Resources
Location Topography Climate Sources of Energy Non-fuel Minerals Environmental sustainability
7-5
Location
Political Relationships
Austria took advantage of its location to Increase trade with the East. Become the principal financial intermediary
between Western and Eastern Europe.
Trade Relationships
7-7
Topography
Mountains Divide
Markets in
Population
Concentration
Mountains also
create concentrations of population
7-9
Deserts and
Tropical Forests
Separate markets
Increase the
Deserts
Tropical Forests
Occupies one-half of Brazil Four percent of population A massive area of bedrock covering
one-half of Canadas land mass
7-12
Bodies of Water
Attracts people and facilitates transportation Inland waterways
Provide inexpensive access to markets Rhine Waterway
Main transportation artery of Europe Carries a greater volume of goods than do the combined railways that run parallel to it
7-11
7-13
Bodies of Water
7-14
7-15
Climate
Climate has some influence on economic development Climate can impede distribution
7-16
Natural Resources
7-17
Energy
Non Renewable
Petroleum
Nuclear Power Coal Natural Gas
Renewable
Hydroelectric Solar Wind Geothermal Waves Tides Biomass (ethanol) Ocean thermal energy
7-18
Energy
Energy
The World Evolution from 1971 to 2003 of world Total Primary Energy Supply* by Fuel (Mtoe)
7-20
Energy
Petroleum
Unconventional sources
Energy
Nuclear Power
energy
7-22
Energy
7-23
Non-fuel Minerals
7-24
Sustainable Business
An economic state in which the demands placed upon the environment by people and commerce can be met without reducing capacity of environment for future generations Three characteristics of sustainable business practices
Limits Interdependence Equity in distribution
7-25
7-26
7-27