IB - Prospects

International Business has tremendous opportunities...

The beverages you drink might be produced in India, but with the collaboration of a USA company. The tea you drink may have been prepared from the tea powder produced in Sri Lanka. The perfume you apply might have been produced in France. The television you watch might have been produced with the Japanese technology. The shoe you wear might have been produced in Taiwan, but re marketed by an Italian company.

Most of us have the experience of browsing Internet and visiting different web sites, knowing the products and services offered by various companies across the globe. Some of us might have the experience of 'even ordering and buying the products through Internet. This process gives us the opportunity of transacting in the international business arena without visiting or knowing the various countries and companies across the globe.

Thus, international business is the process of focusing on the resources of the globe and objectives of the organizations on global business opportunities and threats.

The multinational companies which were producing the products in their home countries and marketing them in various foreign countries before 1980s, started locating their plants and other manufacturing facilities in foreign/host countries. Later, they started producing in one foreign country and marketing in other foreign countries.

For example, Uni Lever established its subsidiary company in India, i.e., Hindustan Lever Limited (HLL). HLL produces its products in India and markets them in Bangladesh, Sri Lanka, and Nepal etc. Thus, the scope of the international trade is expanded into international marketing and international marketing is expanded into international business.

Some  of you have been asking me questions as to how to link HR with IB,given that you have opted for dual specialization.

HR is a field that is applicable across industries and geographies. So, all the issues of HR will be applicable even in the international business context. There may be a few additional areas such as issues of expats (coming in to India) and specific HR issues for those being sent as expats even though they fall under the regular HR issues. The environment within which international business is carried out is increasingly competitive.

• The technological environment is such that technology supremacy is fleeting and since it does not last long - cannot be considered a strong advantage of a company.
• The economic environment is effected by too many uncontrollable factors which means a stable economic situation is less certain. The economy can be effected negatively by things which large companies and federal governments have no control over.
• The political environment responds to the socio-cultural environment - which in many countries, is undergoing the stresses of large immigration movements and cultural and religious frictions. Very few regions of the world are free of conflict so no place has a distinctively advantageous political environment
• The geographic environment, long affected by rampant pollution, deforestation, greenhouses gases from autos and factories, etc has negatively affected business and agricultural productivity.

Global HR Challenges

·         Things that make it difficult for companies to manage Human Resources situations in other countries.

·              o Compensation varies
     o Labour Laws
     o Social-Cultural Environment-"Managing Diversity"

There is very bright future of MBA -International Business with HR specialization.

Most of the organizations that deal with overseas clients are suffering from multiple HR issues because employees are not used to working abroad, cultural differences, behavior guidance, family vs work life balance, and above all attrition. HR managers in such organizations are learning from mistakes but realizing the need for formal education in this sector.

Persons with IB & HR specialization can be engaged in Customer Relationship Management (CRM).

Consultancy is one of the most sought after and remunerative career for international business professionals. An international business consultant is responsible for providing relevant and up - to - date information about various aspects of business development and market information for international companies.

The international business consultant conveys information about foreign business investments, opportunities, competitive companies and even information about business practices and legal implications of owning a business in another country. Risk analysis and business analysis based on research is also a part of responsibility to international business consultant.

I believe there is no need to draw up a detailed link of IB with Marketing and Finance specializations ( since it is quite obvious even from the course taught)

So happy Job Hunting :)