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Geographical features can be an advantage or a disadvantage in international trade.

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To identify geographic features and related advantages

To discuss the effects of location, time, and proximity

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A country’s geographic layout determines how well its companies are able to trade. Success in international business means taking advantage of positive geographic features.

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Geographic Influences on International Trade

Geographic Influences on International Trade

Geographic Features

Geographic Advantages

Geography and Trade Alliances between countries

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Geographic Features

Four Basic Geographical Features

TopographyDeserts and

Tropical Forests

Bodies of Water Climate

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Topography

The topography of a country greatly influences a country’s ability to be self-sufficient and its overall economic well-being.

topography

the physical surface of a geographic area

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Topography

The use of cartography software can produce topographical maps which use contour lines to show elevation.

cartography

the science or art of mapmaking

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Separate by Land and Language A geographic region in Spain called “Basque Country” is separated by mountains from the rest of Spain. Basque separatists want to establish their own country in their historic region. For many years, they have used political protests and more combative means in this quest.

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Deserts and Tropical Forests

Higher transportation costs exist in deserts and tropical forests.

Fewer people live in deserts and tropical forests.

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Deserts and Tropical Forests

Deserts and tropical forests have a low population density.

population density

a measurement of the number of people living in a geographic areaHigh population density

areas have economic opportunity, but problems, such as crime.

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Bodies of Water

Rivers and lakes provide water for irrigation and support the movement of goods through the interior of a country.

Shipping supports a wide number of industries and products.

Areas without ports must find other, usually more expensive ways to move products.

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Bodies of Water

Question How does a country’s access to water affect its economy?

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Climate

A mild climate can promote industries, such as travel, tourism, and agriculture.

Extreme heat and cold may limit a nation’s ability to trade by inhibiting crop growth and activities such as transportation.

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Geographic Advantages and Factors

Some cities or countries have a natural geographic advantage simply because of one key factor in business: location.

Geographic features affect both economic development and international trade.

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Location and Trade Routes

Being located near bodies of water is one of the most important geographic advantages for international trade.

Cities that are located near bodies of water often become important transportation centers.

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Location and Trade Routes

Analyze Why do major cities need good transportation systems?

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Location and Trade Routes

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Time Zones

The farther away from a country you are, the greater the time zone disparity.

New York London Paris

You should conduct business within the parameters of normal business hours.

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Seasons Around the World

Daylight is affected by a country’s north/south location.

The seasons in the Southern Hemisphere are reversed from those in the Northern Hemisphere.

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Geography and Trade Alliances

In business, proximity often leads to closer trade relationships.

proximity

the physical nearness of one thing to another

NAFTA North America

EU Europe

ASEAN Southeast Asia

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Geography and Trade Alliances

North America

South America

Middle East

Eastern Europe

Former U.S.S.R.

Pacific Rim

Common Trade Regions

Central America

EU Region

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Geography and Trade Alliances

Countries that are in close proximity often share a common language.

Countries in close proximity have lower shipping costs.

Sometimes, economic alliances have counterparts in military partnerships.

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Economic and Geographic Influences

Geographic feature’s play a part in creating economic advantages and disadvantages.

Geography affects trade through location, time zones, and proximity.

Trading partners are often physically close together on a world map.