Bài giảng International Business - Chapter seven: Natural Resources and Environmental Sustainability

Natural Resources and Environmental SustainabilityMcGraw-Hill/IrwinInternational Business, 11/eCopyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.chapter sevenLearning ObjectivesDescribe the role of location, topography, climate, and natural resources as factor conditions in Porter’s diamond modelExplain how surface features contribute to economic, cultural, political, and social differences among nations and among regions of a single countryComprehend the importance of inland waterways and outlets to the seaRecognize that climate exerts a broad influence on businessUnderstand the options available for nonrenewable and renewable energy sourcesExplain how factor conditions can impact innovationDescribe environmental sustainability and its characteristicsDraw on the stakeholder theory as a framework for environmental sustainability3Why Switzerland Makes WatchesMostly mountainousClose to populated lowlands of Western EuropeTransportation across mountains expensiveHas no mineral resources4Natural ResourcesLocationTopographyClimateSources of Energy Non-fuel MineralsEnvironmental sustainability5LocationPolitical RelationshipsAustria took advantage of its location toIncrease 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 processing6Trade RelationshipsGeographical proximityOften the major reason for trade between nations.Delivery faster, freight costs lowerMajor factor in formation of trade groups such as EU, EFTA, and NAFTA7TopographyThe surface features of a regionDifferences in topography may require products to be alteredCake mixesInternal combustion enginesIncludesMountains and PlainsDeserts and Tropical Forests Bodies of Water 8Mountains and PlainsMountains Divide Markets inSpainSwitzerlandChinaColombiaPopulation ConcentrationMountains also create concentrations of population9Deserts and Tropical PlainsDeserts and Tropical ForestsSeparate marketsIncrease the cost of transportationCreate concentrations of population10DesertsAustraliaContinent the size of the U.S. but with only 19 million inhabitants.Population concentratedAlong the coastal areas in and around the state capitals.In the southeastern fifth of the nation11Tropical ForestsTropical Rain ForestsBrazilian Amazon basinOccupies one-half of BrazilFour percent of populationCanadian ShieldA massive area of bedrock covering one-half of Canada’s land mass12Bodies of WaterAttracts people and facilitates transportationInland waterwaysProvide inexpensive access to marketsRhine WaterwayMain transportation artery of EuropeCarries a greater volume of goods than do the combined railways that run parallel to it7-1113Bodies of WaterOther Significant WaterwaysThe Amazon River in South AmericaThe Tigris-Euphrates (Iraq), the Ganges (India), and the Indus (India) Rivers is Asia.The Great Lakes--St. Lawrence and the Mississippi River in the United States.14Outlets to the SeaPermit low-cost transportation of goods and people from a country’s coast to its interiorAfrica has 14 of world’s landlocked developing countriesMust construct costly, long truck routes and extensive feeder networksPort countries exert considerable political influence15ClimateClimate (temperature, precipitation, and wind)the most important element of physical forcesSets the limits on what people can do both physically and economicallyClimate has some influence on economic developmentClimate can impede distribution16Natural ResourcesAnything supplied by nature on which people depend.Principal types of natural resources important to businesspeople includeEnergyNon-fuel minerals17EnergyRenewableHydroelectricSolarWindGeothermalWavesTidesBiomass (ethanol) Ocean thermal energyNon – RenewablePetroleumNuclear PowerCoalNatural Gas18EnergyPetroleumConventional sources - OilEstimates of reserves change becauseNew discoveries continue to be made in proven fields.Governments open up their countries to exploration and production.New techniques enable producers to obtain greater output from wells already in operation.Automated, less expensive equipment lowers drilling costs.19EnergyThe World – Evolution from 1971 to 2003 of world Total Primary Energy Supply* by Fuel (Mtoe)20EnergyPetroleumUnconventional sourcesOil sandsLocated primarily in Athabasca, Alberta, Canada.Oil-bearing shaleLargest source is in Utah, Colorado, and Wyoming.CoalUsed primarily in South Africa21EnergyNatural gasHas been fastest growing source of energyNuclear Power Generates little pollution in the normal process22EnergySources of Renewable EnergyOf the eight types, hydroelectric has had an extensive application (7% of total energy consumption in the world).Improved technology has resulted in new support for wind and solar energySolar energy fastest-growing energy technology in the world23Non-fuel MineralsNearly all of the world’s chrome, manganese, platinum, and vanadium are produced by South Africa and the former Soviet Union24Sustainable BusinessAn economic state in which the demands placed upon the environment by people and commerce can be met without reducing capacity of environment for future generationsThree characteristics of sustainable business practicesLimitsInterdependenceEquity in distribution25Stakeholder Based ViewInsert Fig 7-1626The Company in a Societal Context27