TAILIEUCHUNG - Lecture International business (11/e) - Chapter 7: Natural resources and environmental sustainability

The main goals of this chapter are to: Describe the role of location, topography, climate, and natural resources as factor conditions in Porter’s 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;. | Natural Resources and Environmental Sustainability McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter seven Learning Objectives Describe the role of location, topography, climate, and natural resources as factor conditions in Porter’s 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- Why Switzerland Makes Watches Mostly mountainous Close to populated lowlands of Western Europe Transportation across mountains expensive Has no mineral resources 7- Natural Resources Location Topography Climate Sources of Energy Non-fuel Minerals Environmental sustainability 7- 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. Strengthen its role as the regional headquarters for international businesses operating in Eastern Europe. Passive processing 7- Trade Relationships Geographical proximity Often the major reason for trade between nations. Delivery faster, freight costs lower Major factor in formation of trade groups such as EU, EFTA, and NAFTA 7- Topography The surface features of a region Differences in topography may require products to be altered Cake mixes Internal combustion engines Includes Mountains and Plains Deserts and Tropical Forests Bodies of Water 7- Mountains and Plains Mountains Divide Markets in Spain Switzerland China Colombia

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