Importance of studying International Business during MBA

By Dr Shriram Purankar

If you are looking to understand the nuances of global economy and how it can be a potential battlefield for your domestic business then International Business is an area you should focus on specializing in.

It has been said that arguing against globalization is like arguing against the laws of gravity.

- Kofi Annan

The world today is interconnected politically, socially and economically. In order for future managers to understand the internationalization that businesses have undergone in the past few decades, taking up International Business as a subject is of paramount importance. Previously importance was given to domestic markets whereas now the boundaries separating international and national businesses have been deliberately blurred. Experienced expatriates demand a significant premium in compensation and therefore a lot of students doing their MBA are attracted towards pursuing a career of becoming a globetrotting sought-after manager.

Even if you are working for a large MNE and do not have any aspiration to travel abroad you still need to understand the importance of cross-cultural communication to connect with partners who are working overseas. Future managers may find themselves working with foreign buyers, suppliers or vendors or may work in businesses which are affected by foreign competition selling products and services in the home market.

International Business has an interdisciplinary approach as it draws on subject knowledge from economics, social sciences, such as geography, history, political science and also management related fields such as marketing, finance, human resources and operations and logistics. Most students find International Business extremely fun and interesting but may also find that there is an overwhelming amount of information that is being thrown their way while studying the subject.

International Business subject knowledge can enable a student to look at business from a holistic perspective and therefore not get restricted by functional silos, (marketing, Finance, HR etc.) which often are sought after for specialization. IB can also be a specialization of choice for students that come from a family business background as they would eventually be able to strive to take their domestic business overseas. IB knowledge can broaden their horizons and enable them to take successful domestic business to international frontiers.

One of the most fundamental questions, International Business specialization answers is what determines the success and failure of a firm doing business globally. If you are looking to understand the nuances of global economy and how it can be a potential battlefield for your domestic business then International Business is an area you should focus on specializing in.

Some profiles which are suitable for students aspiring to enter the market using International Business in their arsenal of skills are given below.

International Marketing Manager

International marketing managers, also recognized as global marketing managers, normally work for large corporations to trade products or services to clients in other countries. The capability to converse in a second language can be required, and strong interpersonal and leadership skills are also crucial for this profile. Flexibility is also vital to travel repeatedly and for long periods of time. They usually plan and schedule their trips in advance and may need to acquire business visas, schedule meetings with diverse people in foreign countries, and coordinate promotional events.

Business Analyst

International business analyst jobs are accessible with firms which have local as well as global commercial interests. The profession involves data study activities to facilitate business growth.

The assorted responsibilities of an international business analyst consist of accomplishing financial analysis, creating domestic and global budgets documents, aiding proposal strategy, implementing all internal and external forms as per set of international laws, developing business plans to facilitate project management, giving precise and timely information as needed, supervising international and local project plans, widening of strategic initiatives, and warranting effective utilization of resources. Furthermore, an international business analyst can also act as leader for assigned projects and may train and mentor junior staff.

Global Human Resource Consultant

This role involves serving as the role of "advisor", and being a central face of contact for assignees at every stage of assignment.  This person in this profile will also remain the point of contact for stakeholders in global, regional as well as local HR Business Partners, Compensation & Benefits team members and line management to ensure the company’s high quality standards and timelines are achieved.

Pro-active communication is critical to this job to warrant understanding and dedication of all stakeholders involved in international transfers/migration. This includes discussing with HR Business Partners/business line management & supporting them in decision making on assignments set up by discussing mobility policy related questions, offering costs projections, studying specifics of tax & social security implications & finally creating proposals to guarantee best and consistent practice is applied globally. Advising, counselling & assisting expatriates right through entire assignment lifecycle, applying analytical, problem solving & counselling competencies as well as by sharing useful information & contacts are some of the other job responsibilities of a Global human resource consultant.

Trade Finance Executive

The Trade Finance profiles a key area within a trading company. The capabilities to both raise liquidity from our financial partners and mitigate credit and performance exposure of trading counterparties are key tasks for any successful company.

The Trade Finance team can have many key partners, including but not limited to, external Banking & Insurance partners, external counterparties, Traders, Operations, Deals Desk, Tax, Treasury, Credit, and Compliance. Some of the activities carried out by a trade finance executive are as below:

• The issuance of Letters of Credit and Bank Guarantees for the Company’s purchases of commodities and ensuring that both cargoes and storage facilities are financed and insured in a timely manner.
• Managing analysis, monitoring, improvement and awareness of the Company's financial risks.
• Making suitable finance judgments, including overseeing cost efficiency, diversity of financing resource, and minimum use of the Company's own cash.
• Providing guidance to Finance Officers and Traders in difficult or unfamiliar situations.
• Holding responsibility for the upholding of the regional bank lines as well as working as the Company's main liaison with the company’s banking partners.

About the Author:

Dr Shriram Purankar, Assistant Professor, Jaypee Business School.