Business Explain: Geography and History

What is self reference criterion (SRC)?

Refers to the ability to consider our own conditions, values and norms while evaluating others.

What are Hofstede's cultural dimensions?

1. Masculinity vs femininity

2. Power distance

3. Uncertainty avoidance

4. Individualism vs collectivism

Is the global environment a global issue or a national one?

It is both. Countries have to take responsibility for their own actions, and this means that American companies should not allow harmful waste to be put in the ocean just because their factory happens to be in Bangladesh. At some point, each individual decision will affect everyone, globally.

Why are the 1990s called the "Decade of the Environment"?

Since the early 2000, environmental protection is not considered an optional extra, but an essential part of the complex process of doing business. Nowadays, we want to reduce pollution, find new ways to source our energy, and create a sustainable planet.

The Kyoto agreement is an agreement signed by Russia, the EU and a number of other countries, determining the decrease required om pollution over the coming years. Activist groups have come up, which are people or organisations acting to bring about social, political, economic or environmental change.

Do world trade routes bind the world together?

Massive trading routes have been established to create a trading business that can be easily facilitated between developed countries such as Japan, Europe and North America. These minimize distance, natural barriers, lack of resources, and the fundamental differences between people and economies.

An example of these trade routes is the triad trade between EU, North America and Canada, Japan and China. So in a sense, yes they do.

How do differences in people constitute bases for trade?

Understanding the culture and history of countries helps to create an understanding for the way companies and government conduct their business within its own country. History helps define a "mission", how it perceives its neighbors, and how it sees its place in the world. In other words, our history and the culture we grow up in explains our behavior and reasoning.

Explain why the basis of world trade can be simply stated as the result of equalizing an imbalance in the needs and wants of society on one hand and its supply of goods on the other.

Trading goods between countries opens up the possibility for countries to specialize in what they are good at, without having to compromise on other products. Each country produces what they do best, and are able to profit the most from, while trading and import the goods that are costly for themselves to produce.

What are the marketing implications of rapidly growing vs stable population?

Due to the many more people being born and entering the labor market, the great mismatch between population growth and economic growth creates a problem in providing jobs for everyone.

Thus, countries with a rapidly growing population will find it harder to provide for its inhabitants, than a countries with a more stable population.

However, in developed countries where population has stopped growing or even is going backwards, the future will become costly due to all the old people that cannot work anymore, but still need taken care of.

How does the shift from rural to urban areas affect international marketing?

A few decades ago, many still lived in the countryside but today, people are constantly moving into the cities, searching for jobs, seeking money and a good life. This is called urban growth. The disadvantages that arise from urbanization is great pressure on the sanitation systems, water supplies and other social services.

On the other hand, people who move to cities often have much higher incomes than farmers, so as urban populations increase, inhabitants will look for places to spend their money on durable goods, like homes and furniture, and discretionary purchases, like clothes and electronics. New businesses can often take advantage of this trend even better than established competitors if they are nimble enough to cater to the fluctuating tastes of these new classes of people.

What does it mean to examine the more complex effect on geography on general market characteristics, distribution systems and the state of the economy?

The climate affects marketing decisions in many ways, not only product adaptation. Of course altitude, humidity and temperature makes for a larger product adaptation demand. Natural barriers create trading centers, often cities located closely to the ocean, making the distance less important than the actual barriers. Bad road conditions can prolong trips, as well as natural barriers such as mountains if there is no tunnel available.

Looking at the world today, rich countries are continuing on doing well, minimizing risks and overcoming barriers, while many emerging countries could do a lot better. Unfortunately, many of them are at the mercy of nature, and lack capital to overcome natural disasters such as cyclones and heavy rainfall.

Why study geography in international marketing?

Geography is the study of the earth's surface, climate, continents, countries, peoples, industries and resources. The physical character of a nation is possibly the main determinant of both the characteristics of a society and the means by which that society undertakes to supply its needs. Therefore, geography is of interest to a marketer, since it provides information regarding what kinds of products and services could become appreciated if brought into the market or adapted according to the country specifics.

What are the long-term prospects for industrialization of an underdeveloped country with high population growth and minimum resources?

Increasing population means a larger customer demand, but also increased pressure on available resources. Procreation is one of the most culturally sensitive controllable s, and especially in many of the developing countries.

This will have great impact on business and marketing in the future. Markets for infant products, school equipment and maternity have a decreasing demand, while due to the decrease in population in developed countries, the amount of elderly people who cannot work anymore will become costly to these countries. In conclusion, industrialization provides people with jobs, but more importantly it improves their living standards. However, jobs do not grow as quickly as the population, and this means there will be a lack of resources to provide for all these new human beings.