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InternationalMarketing,HistoryandGeography:TheFoundationsofCultureChapter3,14thEditionPhilipR.CateoraMaryC.GillyJohnL.Graham,2,WhatShouldYouLearn?,TheimportanceofhistoryandgeographyintheunderstandingofinternationalmarketsTheeffectsofhistoryonacountryscultureHowcultureinterpretseventsthroughitsowneyesHowtheUnitedStatesmovedwestandhowthismoreaffectedattitudes,3,GlobalPerspectiveBirthofaNationPanamain67Hours,Tounderstandasocietysactionsanditspointsofview,youneedtoappreciate:TheinfluenceofhistoricaleventsThegeographicaluniquenesstowhichaculturehashadtoadaptTointerpretaculturesbehaviorandattitudes,amarketermusthavesomeideaofacountryshistoryandgeography,4,USinvasionofPanama,OnDecember19,1989,PresidentGeorgeH.W.BushdecidedtouseforceagainstPanama,declaringthattheoperationwasnecessarytosafeguardthelivesofU.S.citizensinPanama,defenddemocracyandhumanrights,combatdrugtrafficking,andsecurethefunctioningoftheCanalasrequiredbytheTorrijos-CarterTreaties.,5,HistoryPerspectiveinGlobalBusiness,HistoryhelpsdefineanationsmissionHowitperceivesitsneighboursHowitperceivesitselfItsplaceintheworldInsightsintohistoryareimportantforunderstandingcurrentattitudesItisnecessarytostudycultureasitisnowaswellastounderstandcultureasitwasAcountryshistory,6,HistoryandContemporaryBehavior,JapanesehistorySevencenturiesundertheshogunfeudalsystemTheisolationbeforethecomingofAdmiralPerryin1853.AdmiralPerryopenedupJapantotheWestThreatofdominationbycolonialpowersRiseofnewsocialclassesWesterninfluencesHumiliationofWorldWarIIInvolvementintheinternationalcommunityHistorically,loyaltyandservice,asenseofresponsibility,andrespectfordiscipline,training,andartistrywerestressedtomaintainstabilityandorderAhistoricalperspectivegivestheforeignerabasisonwhichtobegindevelopingculturalsensitivityandabetterunderstandingofcontemporaryJapanesebehavior,EarlyJapaneseSociety,EarliestJapanesesocietywasorganizedintoclans,orgroupsoffamiliesdescendedfromacommonancestor.Eachfamilyinheriteditsposition;warriors,farmers,weavers,pottersBy400A.D.:SeveralclansformedaunionandsettledinthedistrictcalledYamato.,JapaneseFeudalism,Duringthe1100s,strongwarriorfamilieschallengedthepoweroftheHeiancourt.Samurai,orwarriorknights,wagedfiercebattlesforcontroloftheland.Feudalismemergedoutoftheconflict.Feudalism:Systemwherelocallordsruledtheland,buttheyhadtobeloyaltotheemperor.,JapaneseFeudalism,1192:MinamotoYoritomohademergedasthestrongestmilitaryfigureinJapan.Theemperorgavehimthetitleofshogun,orchiefgeneralofthearmy.AnewfeudalclasssystememergedunderMinamotoandhissuccessors.,JapaneseFeudalism,JapaneseFeudalSystemEmperorstoodattheheadofthesystem,butremainedafigurehead.Theshogunexercisedthemostpower.Controlledthelandandthepeople.Commandedanarmyofsamurai.CommonersPeasants,artisans,merchants,JapaneseFeudalism,Intheory,theShoguncommandedcompleteloyaltyofhislords.Inpractice,thesamurailordsandtheirfollowersbattledforpowerwiththeshogunandoneanother.Bythe1400s,Japanwasinconstantstateofwar.Theshogunatepassedfromonemilitaryfamilytoanother.,AchievingUnity,1500s:SeveralstrongmilitaryleaderspushedtoreuniteJapan.ToyotomiHideyoshiAblegeneralwhowasthemostsuccessfulinreunitingJapan.1590:BroughtallofJapanunderhiscontrol.InvadedKoreaandhopedtoconquerChina.Failedinhisgoals,butbuiltthefoundationsforaunitedJapan.,AchievingUnity,1600:TokugawaIeyasu,Hideyoshissuccessor,claimedthetitleofshogun.SetuptheTokugawashogunate,whichlasteduntil1868.Duringthistime,shogunscreatedapeaceful,orderlysocietyundercentralizedfeudalism.,AchievingUnity,Tokugawashogunsleftfeudalclassinplace,butbroughtthedaimyoundertheircontrol.Daimyo:greatsamuraiShogunrequireddaimyotospendeveryotheryearinEdo(Tokyo).DaimyohadtoleavetheirwivesandchildreninEdoaspermanenthostagestoensuretheirgoodbehavior.Emperorremainedapowerlessfigurehead.,AchievingUnity,EconomicandSocialChanges:Edogrewfromasmallfishingvillagetoabustlingcity.Roadsimproved.Tradeandtravelincreased.Citiesandtownssprangupbyharborsandalongrivers.Neweconomicmarketsdeveloped.,AchievingUnity,EconomicandSocialChanges:Thedaimyoandtheirsamuraifollowershadtoadapttothechangingconditions.Nolongerspentallitstimefighting.Somesamuraibecamegovernmentofficials.Othersmanagedtheestatesofdaimyosandtheshogun.Educationbecamemorewidespread.Bytheearly1800s,Japanhadbecomeaunifiednationinmanyways.,AnIsolatedNation,Earlyon,theTokugawasfeltthreatenedbythegrowingnumberofwesternerswhowerearrivinginJapan.Portuguese,Spanish,Dutch,EnglishCatholicmissionarieshadsuccessinconvertingpeople,whichangeredtheshogun.Early1600s:JapanesegovernmentbeganpersecutingforeignmissionariesandJapaneseChristians.1639:Japanwasclosedtotheworld.Foreignerswereforbiddenfromenteringthecountry.Japanesewholeftcouldntreturn.Outlawedthebuildingofocean-goingships.Exceptions:SomecontactwithChina,Korea,andtheDutch.Isolationlastedformorethan200years.,WWIIAlliesv.AxisPowers,AlliesGreatBritainFranceSovietUnion(after6/1941)U.S.(after12/1941)PlusmanysmallerEuropeannations,AxisPowersGermanyItalyJapan,PearlHarbour,JapanwasworkingonexpandingempirethroughoutthePacificTheU.S.hadatradeembargoonJapantotryanddeterJapanfrominvadingcountriesU.S.wasabletointerceptandbreakJapanssecretcodesInterceptedthecodeaboutPearlHarbor-sentthemessageonaslowertelegram(byaccident)towarnU.S.Navyaboutattack,PearlHarbour,ItwasaSundaymorning-U.S.militarywastakenoffguard2fullblownattacksonPearlHarborDecember7,1941Impact/DamageonU.S.o2,400U.S.militaryandcivilianslosttheirliveso1,178U.S.militaryandcivilianswoundedo18shipsand350planessunkordamaged,PearlHarbour,JapanviewedasastunningvictoryDecember8,1941,U.S.declareswaronJapanDecember11,1941,GermanyandItalydeclarewaronU.S.,24,FacetsofJapanesebehaviour,Loyaltyto:FamilyCountryCompanySocialgroupsAndastrongdesiretoco-operateandtoworktogetherforacommoncausearerooteddeepintheJapaneseculture,Economicmiraclecontinued,HardworkConcentratingonconsumergoodsforexportmarketClosegovernmentindustrycooperationNegotiatedsourcesofrawmaterialsProtectivelegislation,Japantoday:problemsandstresses,FallingbirthrateAgingpopulationTextbookcontroversy:Japanesesystemhasoperatedthroughanationalgovernmentscreeningsystemwhichconstrictspublisheroptions,notablyinperiodsofsharpnationalistattackontextbooksRiseofthe“tigers”ofAsia(Singapore,Taiwan,HongKong,SouthKorea,China),27,Japantoday:problemsandstresses,Economicproblems:Japansratioofgovernmentdebttogrossdomesticproduct,currentlyabout2.28,isbyfarthehighestintheindustrialworld,almostdoublethatofevenGreeceandItaly,andsteadilygrowingJapanstradebalanceisabouttogonegativeforthefirsttimesince1980JapanesecompaniesareshiftingproductionoverseasSpaceandpollutionRecurringnaturalcalamities,28,HistoryisSubjective,HistoricaleventsalwaysareviewedfromonesownbiasesandSRCAcrucialelementinunderstandinganynationsbusinessandpoliticalcultureisthesubjectiveperceptionofitshistoryRelationshipbetweenU.S.andMexicoMonroeDoctrine,29,MexicanRevolution,TheMexicanRevolutionwasamajorarmedstrugglethatstartedin1910,withanuprisingledagainstlongtimeautocratPorfirioDazandisrememberedfortheexpulsionofforeignersmostnotablythewealthyandinfluentialNorthAmericanentrepreuners,30,TerritorialExpansionofUnitedStatesfrom1783,31,ManifestDestinyandtheMonroeDoctrine,BothacceptedasthebasisforU.S.foreignpolicyduringmuchofthe19thand20thcenturiesbasedonthebeliefthattheAmericanswereachosenpeoplebyGodtocreateamodelsocietyManifestDestinyjustifiedU.S.expansionAnnexationofTexas,Oregon,NewMexico,andCaliforniaU.S.involvementinCuba,Alaska,Hawaii,andthePhilippinesThreebasicdictaoftheMonroeDoctrineNofurtherEuropeancolonizationintheNewWorldAbstentionoftheU.S.fromEuropeanpoliticalaffairsNoninterventionofEuropeangovernmentsinthegovernmentsoftheWesternHemisphereChangeintheMonroeDoctrine:1881RooseveltCorollary,32,ChangeintheMonroeDoctrine:1881RooseveltCorollary,ThecorollarystatedthatnotonlywilltheUSprohibitnon-AmericaninterventioninLatinAmericanaffairsbutwillalsopolicetheareaandguaranteethatLatinAmericannationsmettheirinternationalobligations.In1905thecorollarywasusedtoforciblyappointanadvisertoDominicanRepublicandlaterusedintheacquisitionofthePanamaCanalZone,33,U.S.InterventioninLatinAmericaSince1945,34,MexicansfeelingtowardsUS,USfeelingsforMexico,MexicansseetheUSasathreattotheirpolitical,culturalandeconomicsovereigntyTheUSissuspectedofthrowingitsweightaroundandhavingaselfinterestinhavinggoodrelationswithMexico,UScitizensdonotunderstandthehostilityoftheMexicanstowardsthemastheyfeelthattheyhavealwaysbeengoodneighboursandhaveprotectedthemfromEuropeancolonisation,Contradictinghistoricalperspectiveofthetworegions,35,Expropriationofforeigninvestments,Thehistoricalattitudes,fears,suspicionandprejudiceoftheLatinAmericanshasledinnotveryrecenttimestoexpropriationandconfiscationofforeigninvestmentseventhoughtheyhadbeenmakingimportantcontributionstotheeconomy.,36,WhatShouldYouLearn?,TheeffectofgeographicdiversityoneconomicprofilesofacountryWhymarketsneedtoberesponsivetogeographyofacountryEconomiceffectsofcontrollingpopulationgrowthversusagingpopulationCommunicationsareanintegralpartofinternationalcommerce,37,FrenchinterventioninMali,FrenchreasonfortheinterventionremainsinlinewiththeWesternmantraof“waronterrorism”,andFrenchinterestsintheregionarenodoubteconomicasmuchaspolitical.Apartfromsome6,000FrenchcitizenslivinginMaliandasignificantMalianpopulationinFranceTheformerFrenchcolonyisAfricasthirdgoldproduceraswellasthesiteofas-yetunexploiteduranium,gasandpetroleumreserves.,38,GeographyandGlobalMarkets,GeographyanelementoftheuncontrollableenvironmentthatconfrontseverymarketerAffectsasocietyscultureandeconomy,howtheeconomyoperatestofulfillthewantsofitspeoplePhysicalmakeuplimitsanationsabilitytosupplyitspeoplesneedsOnceseenasnaturalprotectionfromhostileneighbours,physicalbarrierspauseasbarrierstointernationaltrade,39,ClimateandTopography,Altitude,humidity,andtemperatureextremesSouthAmericaandthePanamaCanalBritishresistanceoftheEnglishChannelTradethroughtheAlpsTheconflictamongnationstocontrolvastareasoflandandsea,40,Productmodificationtosuittopographyofthemarket,BoschSiemensdesignedforEuropeancountriesrequiremorespincyclesasthesundoesnotshineregularlyinthesecountriesWhereasinEquatorialcountriesandcountrieslikeItalyandSpainclothescanbedampasthereisplentyofsunshineforclothestodry,41,Geography,NatureandEconomicGrowth,Mostunder-developednationsaretheonesthatsuffermostfromnaturalandhumanassisteddisastersClimateandtopography,politicalinstability,poorenvironmentalpolicies,naturaldisasters,lackoffundspushthemintofurthereconomicstagnation,42,Geography,NatureandEconomicGrowth,Humaninterventiontoexploitnaturetoitsadvantagemayreapbenefitsbutatthesametimecausesresultantenvironmental,politicalandeconomicissuesExample:aconstructionofadammaybringseveralbenefitstothenationbutbringsvariousotherproblemsinitswakeTheissuesofdisplacementofpopulation,environmentalhazards,lossoffertilityofsoil,43,Civilisationsandtheirconnectionswithwaterandforests,TheEgyptianCivilisationTheIndusValleyCivilisationThePygmiesofCongoTheAboriginesofAustralia,44,Mongoliaseesadramaticshiftfromtheirageoldtraditionaloccupation,MongoliahasmoreanimalsthanpeopleMoreandmorepeoplearenowturningtootheroccupationsanddroppingtraditionalherdrearingThisshiftisbroughtinbythediscoveryofvastreservesofgold,copperandothermineralsMongoliangrowthratenowstandsataround17%MoreandmoremultinationalminingcompaniesinvestinMongolia,45,Geography,NatureandEconomicGrowth,Ascountriesprosper,naturalbarriersareovercomeEnvironmentalissuesDisruptionofecosystemsRelocationofpeopleInadequatehazardouswastemanagementIndustrialpollution,46,Geography,NatureandEconomicGrowth,CountriesthatexperiencerecurringnaturaldisastersdeveloptechnologiestoavertthemorreducetheeffectJapanhashighlydevelopedtechnologyforquake-proofbuildingsTheattitudeofpeopletowardsthesedisastersisalsoaffectedbythefrequencyoftheiroccurrencesMostAsianstakeenvironmentaldeteriorationwithnottoomuchofconcernassomeEuropeansorAmericanswoulddo,47,SocialResponsibilityandEnvironmentalManagement,Environmentalprotectionisnotanoptionalissue,butanessentialpartofbusinessinmoderntimesPollutionisonthevergeofgettingcompletelyoutofcontrolIncreaseinthedegreeofpollutionincitiesaroundtheworldCriticalissue:thedisposalofhazardouswasteSustainabledevelopmentanduseofgreenerenergysources,48,SocialResponsibilityandEnvironmentalManagement,Governmentsaredraftingandenforcingnewregulationsfordisposalofindustrialwasteandtoxicsubstances.Governmentsenforcestricterregulationsforindustriestodisposeandrecyclepotentiallydangerousadtoxicwastes,49,SocialResponsibilityandEnvironmentalManagement,Oilspillsthreatenmillionsofmilesofcoastline,riversystems,lakesandterrestrialhabitatdaily,particularlywherethereisextensiveoildrilling,refining,andtransport.Serious,andpotentiallypermanent,ecologicaldamageispossiblewherechronicspillsoccur.BaselConventionimposesatotalbanontheexportofhazardouswastebydevelopingcountries,50,SocialResponsibilityandEnvironmentalManagement,TheorganisationforEconomicDevelopment,theEU,theUNandinternationalactivistgroupsaretakingactivestepstostrengthenenvironmentalpoliciesMoreandmorebusinessesareembracingtheideaofsustainabledevelopmentasitseemstobethewin-winpolicy,51,Resources,TheavailabilityofmineralsandtheabilitytogenerateenergyarethefoundationsofmoderntechnologyTheprincipalsupplementstohumanenergyAnimalsWoodFossilfuelNuclearpowerOceantidesGeothermalpowerThesun,52,Resources,UnitedStatesinperspective1942nearlyself-sufficient1950majorimporter1973-2000increaseddependencyfrom36%to66%Mid-2000spredictedtobeimportingmorethan70%ofneedsThelocation,quality,andavailabilityofresourceswillaffectthepatternofworldeconomicdevelopmentandtradewellintothe21stcentury,53,Resources,ChinaisnowemergingasthesecondlargestimporterofoilaftertheUSinhewakeofitsexpandingeconomyandgrowingdemandformoreoilThepressureonenergyresourcesincreaseswiththeincreaseineconomicgrowthinbothhighlyindustrialisedandnewlyindustrialisednations,54,Thepowerbalanceshift,ThelocationofmostoftheoilinpoliticallyunstableareasliketheMiddleEast,Iraq,theSovietUnion,LatinAmericacausesaglobalinterdependenceandgreateruncertaintiesforfuturedemandandsupplyAsdemandandpricerisetheimportanceoftheseresourcesbecomemoreandmoreacutefortheinternationalmarketer,3-55,WorldEnergyConsumption,3-56,WorldEnergyConsumption,57,DynamicsofPopulationTrends,GlobalpopulationtrendsdeterminetodaysdemandforgoodsRural/urbanpopulationshiftsRatesofgrowthDistributionbyagePopulationcontrolChangesinpopulationwillprofoundlyaffectfuturedemandThemostimportantdeterrenttopopulationcontrolisculturalattitudesabouttheimportanceoflargefamilies,3-58,WorldPopulationbyRegion2005-2050LifeExpectancyatBirth2005-2010(millions),59,Rural/UrbanMigration,Resultofadesireforgreateraccessto:SourcesofeducationHealthcareImprovedjobopportunities,60,PopulationDeclineandAging,PopulationgrowthinmanycountrieshasdroppedbelowtheratenecessarytomaintainpresentlevelsAnationneedsafertilityrateofabout2.1childrenperwomanNotonemajorcountryhassufficientinternalpopulationgrowthtomaintainitself,3-61,AgeDensityforWorldandSelectedCountries,62,WorkerShortageandImmigration,Thefreeflowofimmigrationwillhelptolessenthedualproblemsofexplosivepopulationexpansioninless-developedcountriesandworkershortageinindustrializedregionsEuropewillneed1.4billionimmigrantsoverthenext50yearsJapanandtheU.S.willneed600millionimmigrantsbetweennowand2050,3-63,500YearsofTrade,3-64,500YearsofTrade,65,WorldTradeRoutes,ProgressionoftraderoutesOverlandSearoutesAirroutesTheInternetTraderoutesbindworldtogether,minimizing:DistanceNaturalbarriersLackofresourcesFundamentaldifferencesbetweenandeconomiesTraderoutesrepresentattemptstoovercomeinfluenceofgeographyCausingeconomicandsocialimbalances,66,CommunicationLinks,TelegraphTelephoneTelevisionSatellitesComputerInternet,67,LiberalizationoftheTele

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