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Elements of Physical & Geographic factors that affect International…
Elements of Physical & Geographic factors that affect International Business
Topography
Mountains
Divide Markets
Create conc. of population
Climate more pleasant on higher altitudes
Make transportation difficult
Plains & Plateaus
more population on lowlands
Deserts
Separate markets, inc cost of transportation
E.g. Sahara Desert
No water & irregular surfaces
Forests
Separate markets: inc cost of transportation
Bodies of Water
Rivers
Source of irrigation and development of fertile plants
inland waterways for transportation
E.g. Rhine Waterway
Location
Affects Trade relationships
e.g. Austria's location
increase trade with Eastern Europe
Develop close trading links with EU members
e.g Laos
Land-locked country
No coastline
Imports & Exports to pass through territories = More tariffs paid
Climate
Temperature, Precipitation
continuous heat cause unrestrained growth of weeds, insects, viruses and parasites
Hot climate = Diseases & Death
Impact on Product mix: Snow boots, etc.
Natural Resources
Discover Natural Resources
OR
Produce Alternative Source
Energy resources & Non-fuel minerals
Physical Infrastructure
Can Create new markets & industries
can stimulate economic development
reduce delivery times and cut distribution costs
Examples
Euro Channel Tunnel
Travel time from London to Paris is reduced
Seto-Ohashi Bridge
double-deck bridges in Japan that run across five small islands
replacing a slow & low-vol ferry
Suez Canal
Crossroads of Europe, Asia and Africa
shortened shipping distance bet. Japan and Netherlands
North South Expressway
Links 40 towns and cities in Malaysia
Transportation from SG to KL is 3.75 hrs (instead of 7 hours)
New townships & industrial parks took shape
Trade & tourism enjoyed a new era of growth