You are on page 1of 17

Career Opportunities in International Business During the last two decades the world has witnessed a sea change

in the international trade practices, processes and behaviour. Liberalization has opened new horizons of international trade for its huge potential market and has also opened vistas of foreign markets for its diversified product line. Though India's foreign trade constitutes only 1% of the total world trade, the volume and diversity is significant. In 1991 when the new economic policy was introduced India's export was merely $ 18 billion which surged to about $ 200 billion by the year 2009. According to an estimate, 45% of the GDP is due to export and import. India's total share in goods and services trade was 0.92% in 2003 which increased upto 1.64% in 2008. Studies have revealed that nearly 14 million jobs were created directly or indirectly as a result of augmented exports in the last five years (i.e. from 2003 to 2008). Also the EXIM (Export Import) policy provides for an export growth of 15% thereby increasing the share of world trade to 1.5% from the existing 1%. For achieving this objective, the Government has strengthened the foreign trade policy and set up Export Processing Zones (EPZ), Special Economic Zones (SEZ), dry ports for facilitating export and imports, exemptions of duty and other measures. Thus, international trade and business have tremendous scope in terms of employment and entrepreneurial opportunities in India. Dimensions of International Business : In broader terms, international business strives for achieving the foreign trade objectives of a country by integrating the export and import practices of various trading partners / countries. With the emergence of WTO (World Trade Organization) in 1999 the international trade practices have gone standardized and member countries have agreed to come under a broader network with some common rule and trade codes of conduct. Though there are some impediments and disagreements on some issues, the contribution of this organization to bring world trade coherence can not be neglected. Since various trading partners / countries are involved in the complex trade activities, a lot of complexities arise during the whole process. These may be due to differing export - import policies, legislations, custom agreements, documentation requirements, quality control concerns, standardization and other micro / macro economic consideration.

International business operations account for production, invoicing, packing, insurance, transportation and shipping, logistics, quality control, inspection, finance, documentation, marketing, import, export, custom clearance, legislation, risk assessment, surveying, service, liasoning, foreign exchange management, merchandizing, taxation, research and development etc. Aside from it, there is direct role of professionals in managing human resource at multinational companies involved in international trade and business. These include; cross cultural research methodology and cross cultural negotiation and communication, foreign exchange markets and their operations, institutions for finance and infrastructure including Export Promotion Councils and Commodity Boards, State Trading Corporations, Export Processing Zones, Regional Trade Blocks, Multilateral and Bilateral Trade Agreements and E - Commerce. They enhance the scope of international business. Scope and Nature of Career in International Business : In view of the dimensions mentioned above, the professionals in international business are required by organizations involved in export import specially export houses, merchandisers, custom clearing houses, special economic zones, dry ports, ports, logistic companies, transportation corporations, state trading corporations, marine insurance companies, shipping companies / corporations, directorate general of foreign trade, banks and financial institutions providing export - import finance & foreign exchange services, pre - shipment and post - shipment quality control labs, export marketing firms, BPO involved in export import business, customer relationship management, International finance, international accounting and international financial management. International business management is one such career course that offers ample scope for career in international and transnational corporations. Candidates after completing the course may search for jobs available in the export companies, public sector houses, international banks and companies having subsidiaries in other countries. Most of the companies offer handsome salary packages along with other lucrative facilities. After completing masters degree / diploma in international business, one can be absorbed in export houses or with merchandisers. The responsibilities assigned to a professional may be documentation related to export / import and liasoning with the tax & custom authorities. Their work also involves liasoning between exporters and port authority. CHA (Custom House Agents) are required by the exporters to facilitate the custom clearance. Similarly, export managers and executives are much in demand for insurance companies particularly marine insurance corporations where they are required to assess the loss or

physical damage to the goods shipped in a country. They are assigned the responsibilities of assessors, surveyors and certifiers. This is a very technical and specified job which not only requires professional competence but also demands knowledge of latest standards and legislations in international business to cope up with the situation. In marketing field there lies enormous scope for the management graduates with IB specialization. For boosting overseas sales, searching new business hubs and potential markets abroad, marketing professionals are desired by the export houses. The essential qualification includes; post graduate degree in IB with attitude to take challenges coupled with understanding of the world business environment. Knowledge of foreign language is an added advantage for these professionals. In addition to the above, international marketing executives suggest strategies based on marketing research and predict demand and potential buyers abroad. They are also 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. International business consultants work for companies that are already in international markets or with companies that are planning international expansions or investments. Risk analysis and business analysis based on research is also a part of responsibility to international business consultant. If one can develop and exposed to the international trade legislation, negotiation and research in international trade, he will surely find suitable positions in WTO, UNCTAD, IMF, World Bank, Regional Trade Blocks and trade associations. Experts in commodity trade are also required for the posts catering to the needs of the exporters and importers. The persons with interest in legal affairs of international trade disputes ranging from patents, specific product and service categories related to geographical locations, multilateral and bilateral trade agreements, customs, tariffs and non tariff issues are much in demand to solve the legal disputes among countries. A degree in international business with law qualification is sufficient to grab the

opportunity in this sector. International finance has also emerged as a major sector attracting experts in managing the fianc related affairs of multinational corporations and Despite the increasing demand of experts in international business management, there is a dearth of faculty in international business in management institutions offering and planning to offer these courses. If you have a taste of updating, analyzing, accelerating, disseminating your knowledge in international business, there lies enormous opportunities in teaching and research profession. You can develop your specialization in the field of international business area if already teaching in some institution. Media reporting and journalism related to import export and commodity specific reporting can also be a good opportunity to the young people having a flare for international business news in print and electronic media. People having analytical skills and background in international finance are placed at different positions in finance related departments of banks and financial institutions. Now a days banks have their own separate wings of foreign exchange transactions, export finance, risk management and consultancy in international financial management where every task related to foreign exchange dealings and export import finance is performed e.g. letter of credit etc. Competent professionals must have degree in international business with specialization in international finance are placed for this job. EXIM bank, public & private and foreign banks also appoint specialized people in international finance, foreign exchange, risk management and currency derivatives. Entrepreneurship is also one of the lucrative career options for the persons who desire to have their own export house for facilitating international trade practices. The professional having some experience in export - import documentation can establish their offices in dry ports, SEZ and export processing zones (EPZs) and provide services to the clients (in this case exporters and importers) related to every aspect of procedural requirement of export and import. International accounting is also an area where the experts in accounting operations may be posted in multinational corporations and firms engaged in international business operations. The accounting professionals are required for compliance of international accounting norms and standards.

INTERNATIONAL BUSINESS MANAGEMENT The beverages you drink might be produced in India, but with the collaboration of a USA company. The tea you drink is prepared from the tea powder produced in Sri Lanka. The spares and harddisk of the computer you operate might have been produced in the United States of America. 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 remarketed by an Italian company. Air France and so on so forth might have provided your airtravel services to you. Most of you 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 you might have the experience of 'even ordering and buying the products through Internet. This process gives you the opportunity of transacting in the international business arena without visiting or knowing the various countries and companies across the globe. You get all these even without visiting or knowing the country of the company where they are produced. All these activities have become a reality due to the operations and activities of

international business. 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. Evolution of International Business The business across the borders of the countries had been carried on since times immemorial. But, the business had been limited to the international trade until the recent past. The post World War If period witnessed an unexpected expansion of national companies into international or multinational companies. The post 1990s period has given greater fillip to international business. In fact, the term international business was not in existence before two decades. The term international business has emerged from the term international marketing, which in turn, emerged from the term 'export marketing'. International Trade to International Marketing: Originally, the producers used to export their products to the nearby countries and gradually extended the exports to faroff countries. Gradually, the companies extended the operations beyond trade. For example, India used to export raw cotton, raw jute and iron ore during the early 1900s. The massive industrialization in the country enabled us to export jute products, cotton garments

and steel during 1960s. India, during 1980s could create markets for its products, in addition to mere exporting. The export marketing efforts include creation of demand for Indian products like textiles, electronics, leather products, tea, coffee etc., arranging for appropriate distribution channels, attractive package, product development, pricing etc. This process is true not only with India, but also with almost all developed and developing economies. International Marketing to International Business: 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, Nepal etc. Thus, the scope of the international trade is expanded into international marketing and international marketing is expanded into international business. Nature of International Business The 1990s and the new millennium clearly indicate rapid

internationalization and globalization. The entire globe is passing at a dramatic pace through the transition period. Today, the international trader is in a position to analyze and interpret the global social, technical, economic, political and natural environmental factors more clearly. Conducting and managing international business operations is a crucial venture due to variations in political, social, cultural and economic factors, from one country to another country. For example, most of the African consumers prefer less costly products due to their poor economic conditions. Whereas the German consumers prefer high quality and high priced products due to their higher ability to buy. Therefore, the international businessman should produce and export less costly products to most of the African countries and vice versa to most of the European and North American countries. High priced and high quality Palmolive soaps are marketed in European countries and the economy priced Palmolive soaps are exported and marketed in developing Countries like Ethiopia, Pakistan, Kenya, India, Cambodia etc. International business houses need accurate information to make an appropriate decision. Europe was the most opportunistic market for leather goods and particularly for shoes. Bata based on the accurate data could make appropriate decision to

enter various European countries. International business houses need not only accurate but timely information. CocaCola could enter the European market based on the timely information, whereas Pepsi entered later. Another example is the timely entrance of Indian software companies into the US market compared to those of other countries. Indian software companies also made timely decision in the case of' Europe. laws, business laws and policies and regulations formulated by the Indian Government. For example, international business should enter into joint venture with the domestic company to enter Malaysia. Important among them include: Host Country's Monetary System: Countries regulate the price level, flow of money, production levels etc. through their monetary systems. In addition, they regulate foreign exchange rates also through the monetary system. The tools of monetary system include bank rate, cash reserve ratio, statutory liquidity ratio etc. Governments also regulate remittance of the profit of international business houses to other countries. International companies should obey these regulations. The Indian Government introduced full convertibility on current account; in fact, many Governments introduced full convertibility on current account as a part of economic liberalisation.

National Security Policies of the Host Countries: Every country formulates the policies for its national security. Multinational companies should abide by these national security policies. For example, USA is a free economy as far as carrying out the business compared to many Impact of Culture of Switzerland Housewives On Marketing of Dishwashers In Switzerland, foreign dishwasher manufacturers expected the same rapid sales as they had first obtained in other West European markets; but sales in Switzerland were so slow that research had to be done to find out why (this research should, of course, have been done before not after market entry). The research showed that the Swiss housewife had a different set of values to, for example, her French and English counterparts; she was very conscious of her role as strict and hardworking and her responsibility for the health of her family. To the Swiss housewife dishwashers simply made life easy, and this conflicted with her Calvinistic work ethic. As a result of th s research, dishwasher manufacturers had to change their advertising promoting, instead of ease and convenience, hygiene and health. They did this by emphasizing that because dishwashers used temperature higher than hand hot, the process was more

hygienic than washing up by harid. Thereafter, they had no automatic dishwashers in Swit7erland. Language: language is an important factor in international business. Even though 'English language' is a major language in business operations in the world, there are still a large number of 'nonEnglish' speaking countries. Therefore, international business houses should train their employees in the local language of thc host country. Added to this, there would be many languages in use in many, countries like ours. Therefore, the business houses should train their employees in the local languages also. Nationalism and Business Policy : Nationalism is a dominating factor of the social life of the people of the host countries. In fact, nationalism also affects the business operations of the multinational corporations dramatically and drastically. The US people used the slogan 'Be American and Buy American Made', when the US automobile industry failed to meet the competition of Japanese automobile companies operating in USA. Similar incidents are dso observed in developing countries. Therefore, international business houses should be cautious of nationalism and its after effects Read more: http://wiki.answers.com/Q/Define_the_concept_of_international_business_and_also_explai n_its_scope_and_nature#ixzz1Ur8pJoSI

nternational marketing
From Wikipedia, the free encyclopedia

International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.[1] It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets.[2] According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."[3] In contrast to the definition of marketing only the word multinational has been added.[3] In simple words international marketing is the application of marketing principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. The intersection is the result of the process of internationalization. Many American and European authors see international marketing as a simple extension of exporting, whereby themarketing mix 4P's is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardised approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments.
Contents
[hide]

o o o

1 Topics covering the micro-context of international marketing 2 Differences between domestic marketing and international marketing 3 Mode of engagement in foreign markets 3.1 Exporting 3.2 Joint ventures 3.3 Direct investment

4 References

[edit]Topics

covering the micro-context of international marketing

According to Kotabe, the following topics covers the micro-context of international marketing.[4] Organisational and consumer behaviour:

organisational buying behaviour; international negotiations; consumer behaviour; country of origin.

Marketing entry decisions:

initial mode of entry specific modes of entry

exporting; joint ventures.

Local market expansion: marketing mix decisions:

global standardisation vs. local responsiveness Marketing mix: product policy; advertising; pricing; distribution.

Global strategy:

Competitive strategy:
conceptual development; competitive advantage vs. competitive positioning; sources of competitive advantage and performance implications.

Strategic alliances:

learning and trust; recipes for alliance success; performance of different types of alliance.

Global sourcing:
global sourcing in a service context; benefits of global sourcing; country of origin issues in global sourcing.

Multinational performance:

determinants of performance; a different interpretation of performance. Analytical techniques in cross-national research:

measuerment issues; reliability and validity issues. [edit]Differences

between domestic marketing and international marketing


There are various differences between domestic marketing and international marketing. Due to a language barrier it is more difficult to obtain and interpret research data in international marketing. [5] Promotional messages needs to consider numerous cultural differences between different countries. [5] This includes the differences in languages, expressions, habits, gestures, ideologies and more. For example, in the United States the round O sign made with thumb and first finger means "okay" while in Mediterranean countries the same gesture means "zero" or "the worst".[6] In Tunisia it is understood as "I'll kill you" meanwhile for a Japan consumer it implies "money".[6] Even among the 74 English-speaking nations a word with the same meaning can differ greatly from the English which is spoken in the United States as the following example shows:[6]

Police: bobby (Britain), garda (Ireland), Mountie (Canada), police


wallah (South Africa)

Porch: stoep (South Africa), gallery (Caribbean)

Bar: pub (Britain), hotel (Australia), boozer (Australia, Britain, New


Zealand)

Bathroom: loo (Britain), dunny (Australia) Ghost or monster: wendigo (Canada), duppy (Caribbean), taniwha
(New Zealand)

Barbecue: braai (South Africa), barbie (Australia) Truck: lorry (Britain and Australia) Festival: feis (Ireland) Sweater: jumper (England) French fries: chips (Britain) Soccer: football (the rest of the world) Soccer field: pitch (England)
Three recent international examples of misinterpretation are: [6]

On a sign in a Bucharest hotel lobby: The lift is being fixed for the
next day. During that time, we regret that you will be unbearable.

From a Japanese information booklet about using a hotel air


conditioner: Cooles and Heates: If you want just condition of warmin your room, please control yourself.

In an Acapulco hotel: The manager has personally passed all the


water served here.

[edit]Mode

of engagement in foreign markets

After the decision to invest has been made, the exact mode of operation has to be determined. The risks concerning operating in foreign markets is often dependent on the level of control a firm has, coupled with the level of capital expenditure outlayed. The principal modes of engagement are listed below:

Exporting (which is further divided into direct and indirect exporting) Joint ventures Direct investment (split into assembly and manufacturing) [edit]Exporting

Direct exporting involves a firm shipping goods directly to a foreign market. A firm employing indirect exporting would utilise a channel/intermediary, who in turn would disseminate the product in the foreign market. From a company's standpoint, exporting consists of the least risk. This is so since no capital expenditure, or outlay of company finances on new non-current assets, has necessarily taken place. Thus, the likelihood of sunk costs, or general barriers to exit, is slim. Conversely, a company may possess less control when exporting into a foreign market, due to not control the supply of the good within the foreign market.

[edit]Joint

ventures

A joint venture is a combined effort between two or more business entities, with the aim of mutual benefit from a given economic activity. Some countries often mandate that all foreign investment within it should be via joint ventures (such as India and the People's Republic of China). By comparison with exporting, more control is exerted, however the level of risk is also increased.

[edit]Direct

investment

In this mode of engagement, a company would directly construct a fixed/non-current asset within a foreign country, with the aim of manufacturing a product within the overseas market. Assembly denotes the literal assembly of completed parts, to build a completed product. An example of this is the Dell Corporation. Dell possesses plants in countries external to the United States of America, however it assembles personal computers and does not manufacture them from scratch. In other words, it attains parts from other firms, and assembles a personal computer's constituent parts (such as a motherboard, monitor, CPU, RAM, wireless card, modem, sound card, etc.) within its factories. Manufacturing concerns the actual forging of a product from scratch. Car manufacturers often construct all parts within their plants. Direct investment has the most control and the most risk attached. As with any capital expenditure, the return on investment (defined by the payback period, Net Present Value, Internal Rate of Return, etc.) has to be ascertained, in addition to appreciating any related sunk costs with the capital expenditure.

[edit]References

1. 2. 3.

^ Marketing, Tim McGraw-Hill ^ Joshi, Rakesh Mohan, (2005) International Marketing, Oxford

University Press, New Delhi and New York ISBN 0195671236 ^ a b Onkvisit, Sak; John J. Shaw (2004). "Process of

international marketing". International marketing: analysis and strategy (4th ed.). p. 3. Retrieved 2009-10-11.

4.

^ Paliwoda, Stanley J.; John K. Ryans (2008). "International

business vs. international marketing". International Marketing: Modern and Classic Papers. Peter Buckley, Kotabe (2001, p. 461-2). p. 4. Retrieved 2009-10-22.

5.

^ a b Bennett, Roger; Jim Blythe (2002). "The nature of

international marketing". International marketing: strategy planning, market entry & implementation (3rd ed.). p. 4. Retrieved 2009-10-12.

6.

^ a b c d Kurtz, David L. (2008). "Part 6 - Promotional

decisions". Contemporary Marketing (13th ed.). p. 494. Retrieved 2009-10-12.