History and GeographyThe Foundations of Culture

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Learning Objectives

• The importance of history and geography in the understanding of international markets

• The effects of history on a country’s culture• How culture interprets events through its own eyes• How the United States moved west and how this more affected

attitudes• The effect of geographic diversity on economic profiles of a

country• Why markets need to be responsive to geography of a country• Economic effects of controlling population growth versus aging

population• Communications are an integral part of international commerce

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Territorial Expansion of United States from 1783

• Insert Exhibit 3.1

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U.S. Intervention in Latin America Since 1945

• Insert Exhibit 3.2

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World Energy Consumption

Percentage of World Energy Consumption by Energy Source

38%

24%

24%

7%7%

Oil

Gas

Coal

Nuclear

Hydro/Other

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World Energy Consumption

Total World Energy Consumption by Region and Fuel (Quadrillion BTUs)

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0

Africa

Middle East

South America

Industrialized Asia

Eastern Europe/FSU

Europe

Developing Asia

North America

Oil Gas Coal Nuclear Hydro/Other

115.7QBTUs

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Dynamics of Population Trends

• Controlling population growth- The most important deterrent to population control is cultural

attitudes about the importance of large families.• Rural/urban migration

- Result of a desire for greater access to sources of education, health care, and improved job opportunities.

• Population decline and aging- Population growth in many countries has dropped below the rate

necessary to maintain present levels.- A nation needs a fertility rate of about 2.1 children per woman.- Not one major country has sufficient internal population growth to

maintain itself.

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World Population by Region, 2005-2050, and Life Expectancy at Birth, 2005-2010 (millions)

• Insert Exhibit 3.4

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Rural and Urban Population, 2005-2030 (millions)

• Insert Exhibit 3.5

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World Trade Routes

• Progression of trade routes:- Overland- Sea routes- Air routes- The Internet

• Trade routes among Europe, Asia and the Americas were well established by the 1500’s.

• Trade routes represent the attempts of countries to overcome economic and social imbalances created in part by the influence of geography.

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Communication Links

• Telegraph• Telephone• Television• Satellites• Computer• Internet

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Summary

• A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences.

• Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution.

• Without a historical understanding of a culture, the attitudes within the marketplace may not be fully understood.

• The study of history and geography is needed to provide the marketer with an understanding of why a country has developed as it has rather than as a guide for adapting marketing plans.