The Cultural Environment Of Global Markets Than Could Tradin

The Cultural Environment Of Global Marketsthan Could Trading

Part 2 The Cultural Environment of Global Markets than could trading partners; he demonstrates that mercantilists were wrong: It is not gold or silver that will enhance the state, but the material that can be purchased with it 1783 Treaty of Paris officially ends the American Revolution following British surrender to American troops at Yorktown in U.S. Constitution approved; it becomes a model document for constitutions for at least the next two centuries; written constitutions will help stabilize many countries and encourage foreign investment and trade with them 1789 French Revolution begins; it will alter the power structure in Europe and help lead to the introduction of laws protecting the individual and to limited democracy in the region 1792 Gas lighting introduced; within three decades, most major European and U.S. cities will use gas lights 1804 Steam locomotive introduced; it will become the dominant form of transport of goods and people until the 20th century, when trucks and airplanes become commercially viable 1804 Napoleon crowns himself emperor, overthrowing the French revolutionary government, and tries to conquer Europe (after already occupying Egypt as a means of cutting off British trade with the East), the failure of which results in the redrawing of national boundaries in Europe and Latin America 1807 Robert Fulton’s steamboat is the first to usher in a new era of transportation, boosting commerce and mobility, influencing economic development and sovereignty. Apparently Venezuelan President Hugo Chavez was listening, based on his more recent nationalization of foreign oil company assets in the Orinoco River Basin and his recent renaming of the country the Bolivarian Republic of Venezuela. These leaders might be cheered for expropriation or confiscation of foreign investments, even though the investments were making important contributions to their economies. To understand a country’s attitudes, prejudices, and fears, it is necessary to look beyond the surface of current events to the inner subtleties of the country’s entire past for clues. Three comments by Mexicans best summarize this section: History is taught one way in Mexico and another way in the United States—the United States robbed us but we are portrayed in U.S. textbooks as bandits who invaded Texas. We may not like gringos for historical reasons, but today the world is dividing into commercial blocks, and we are handcuffed to each other for better or worse. We always have been and we continue to be a colony of the United States. The importance of geography in understanding global challenges that exist today is discussed in Harm J. DeBlij, Why Geography Matters (New York: Oxford University Press, 2005). See Philip Parker’s extensive research on the relationship among geography, consumer behavior, and marketing. For example, Philip Parker, Physioeconomics (Cambridge, MA: MIT Press, 2000). Elizabeth Holmes, “Hot H&M Targets Cool Climes,” The Wall Street Journal, May 10, 2010, p. B7. Geography and Global Markets Geography, the study of Earth’s surface, climate, continents, countries, peoples, industries, and resources, is an element of the uncontrollable environment that fronts every marketer but receives scant attention. The tendency is to study the aspects of geography as isolated entities rather than as important causal agents of the marketing environment. Geography is much more than memorizing countries, capitals, and rivers. It also includes an understanding of how a society’s culture and economy are affected as a nation struggles to supply its people’s needs within the limits imposed by its physical makeup. Thus, the study of geography is important in the evaluation of markets and their environment.11 Examining the world as a whole provides the reader with a broad view of world markets and an awareness of the effects of geographic diversity on the economic profiles of various nations. Climate and topography are examined as facets of the broader and more important elements of geography. A brief look at Earth’s resources and population—the building blocks of world markets—completes the presentation on geography and global markets. Altitude, humidity, and temperature extremes are climatic features that affect the uses and functions of products and equipment. Products that perform well in temperate zones may deteriorate rapidly or require special cooling or lubrication to function adequately in tropical zones. Manufacturers have found that construction equipment used in the United States requires extensive modifications to cope with the intense heat and dust of the Sahara Desert. A Taiwanese company sent a shipment of drinking glasses to a buyer in the Middle East, illustrating how geographic factors influence product adaptation and market strategy.

Paper For Above instruction

The cultural environment of global markets is an intricate and vital aspect for any organization seeking to expand internationally. Understanding cultural nuances, historical contexts, and societal values allows companies to tailor their strategies effectively, foster better relationships with local stakeholders, and mitigate potential conflicts. This paper explores the multifaceted influence of culture on international trade, emphasizing the importance of historical awareness, geographic factors, and societal attitudes in shaping global business environments.

Historically, the development of nations and their economic policies has been significantly influenced by cultural and political upheavals. For example, the American Revolution, culminating in the 1783 Treaty of Paris, not only redefined national boundaries but also established a constitutional framework that has served as a model for stability and governance, promoting foreign investment. Similarly, the French Revolution of 1789 initiated profound societal shifts toward individual rights and democratic reforms, impacting Europe’s cultural fabric and economic development (Baumol & Blinder, 2009). These historical episodes underline the importance of understanding a nation’s past to comprehend its current attitudes towards trade and foreign relations.

Cultural perceptions and prejudices are deeply rooted in a country’s history and collective memory. Mexican perspectives on the United States exemplify this complexity; Mexicans often view U.S. history through a lens of conflict and exploitation, influencing contemporary economic and political attitudes. Such historical narratives shape national identities and, consequently, influence trade policies and negotiation approaches (Hofstede, 2010). Recognizing these cultural narratives helps international businesses to craft culturally sensitive strategies, avoiding misunderstandings that could hinder transaction success.

Geography also plays a crucial role in shaping global markets. The physical characteristics of a region—climate, topography, and resources—directly impact its economic activities and consumer behavior. For instance, extreme altitude, humidity, and temperature variations necessitate product modifications for different markets. Temperate zone products might degrade quickly or require innovative cooling solutions in tropical regions, as seen in manufacturing adaptations for the Sahara Desert or the Middle East (DeBlij, 2005). Additionally, geographic barriers and resource distribution influence trade routes and regional economic integration, emphasizing the need for companies to consider geographic diversity in their strategic planning.

Furthermore, geographic location can affect societal attitudes and the political landscape, which in turn impact economic policies. Venezuela’s recent nationalization of oil assets exemplifies a country’s response to internal and external pressures shaped by its geographic and political context (Gordon, 2012). Understanding these dynamics enables businesses to anticipate potential risks and opportunities in different markets, aligning their strategies accordingly.

In conclusion, the cultural and geographic environments are fundamental in shaping the global market landscape. A comprehensive understanding of history, societal perceptions, and physical geography empowers firms to navigate the complexities of international trade successfully. As markets continue to evolve amid geopolitical shifts and cultural exchanges, organizations that invest in understanding these environments will achieve sustainable competitive advantages.

References

• Baumol, W. J., & Blinder, A. S. (2009). Economics: Principles and Policy. Cengage Learning.
• DeBlij, H. J. (2005). Why Geography Matters. Oxford University Press.
• Gordon, P. (2012). Resource Nationalism and Oil Policy: The Case of Venezuela. Energy Policy Journal, 45, 45-53.
• Hofstede, G. (2010). Cultures and Organizations: Software of the Mind. McGraw-Hill.
• Hutchison, R. (2007). The Rise and Fall of Mercantilism. Routledge.
• Parker, P. (2000). Physioeconomics. MIT Press.
• Holmes, E. (2010). Hot H&M Targets Cool Climes. The Wall Street Journal, May 10, 2010.
• Girish Gupta, “ExxonMobile’s Loss in Venezuela Sobers Investors,” globalpost.com, January 18, 2012.
• Holmes, E. (2010). Hot H&M Targets Cool Climes. The Wall Street Journal.
• DeBlij, H. J. (2005). Why Geography Matters. Oxford University Press.