International Business/Foreign Trade
In the present era of globalization, Foreign trade/International business has great significance in the economic development of a country. Liberalisation has opened new horizons of international trade for the market and has also opened vistas of foreign markets for the diversified product line. This arena along with the traditional export and import industry provides pathway to a multitude of careers. An individual interested in finance and global business might consider a career in foreign trade. International trade is a branch of economics, which, together with international finance, forms the larger branch of international economics
Foreign trade is the exchange of goods and services between nations. It is the export of goods and services to foreign countries and the import of goods and services to the home country. Trade has always been a major force behind the relations among nations. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade has resulted in the import of products which are difficult to produce or unavailable in a country, and export of surplus product from a country. If a country cannot efficiently produce an item, it can obtain the item by trading with another country. It enables each country to make the best use of its most abundant resources. By selling its surplus, whether it's raw material or finished product, a country earns the money to import another nation's surplus. In most countries, foreign trade represents a significant share of the gross domestic product (GDP). In India about 45% of GDP is due to export and import.
Today businesses are not just limited to the boundaries of their countries; they are expanding globally at a faster rate. There is increasing connectivity and interdependence among the world markets and businesses. A country's balance of trade (relation of exports to imports) is an important measure of its economic health. Most economists believe that imports and exports should be equal in value, or exports should be higher, for a healthy national economy. In order to facilitate foreign trade, government has set up Export Processing Zones, Special Economic Zones (SEZ), ports for facilitating exports and imports and also introduced various exemptions of duties.
As more and more companies grow global, the need for qualified professionals to work in the international business domain increases. Those who are involved in the field of foreign trade is known as import and export professionals or foreign trade experts. The job responsibility of a foreign trade expert involves providing guidance and assistance to businesses involved in export and import of goods and services. International Business in India is really lucrative and every passing day, it is coming up with more possibilities. A large number of manufacturing companies, financial institutions, Banks and Government agencies trade outside their countries boundaries, they all have immense requirements for the candidates qualified in international business. 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, foreign exchange management, merchandizing, taxation, research and development etc.
Eligibility
Educational:
Degrees in international business are available at the Bachelor, Master's and doctoral level. Generally for undergraduate courses, the eligibility is 10+2 with 50% marks, and for Masters in International Business and foreign trade, the aspirant must be at least a graduate preferably in commerce. Diploma programs are also available in international business.
Most careers in international business require a master's degree at minimum, and employers increasingly prefer candidates with a doctoral degree and a specialization in international business or Foreign trade. With more and more companies stretching their business outside their home country, a degree in international business is very crucial and opens doors to many lucrative career opportunities.
Admission to the masters programs are held on the basis of a written test, group discussion and personal interview. Separate tests are conducted by different institutes like CAT by IIMs, MAT by All India Management Association, XAT by Xavier Institutes etc. Besides, there are executive MBA (IB) programmes offered by some institutes which require a minimum level of experience.
The content of the course includes subjects like import/export management, international trade and logistics, international marketing, foreign exchange management, international finance etc.
Personal attributes:
Excellent communication skills, a keen aptitude for business, knowledge of foreign languages, persuasive ability and confidence are some of the attributes required to be successful in this field. Apart from the above to excel in international business knowledge of economies of different countries, understanding the modern trend in business, leadership and managing skills are required. International business professionals need proficiency in organizing, planning, co-ordination and directing activities.
Job Prospects & Career Options
The growth of foreign business and its importance to the national economy has increased the need for individuals prepared to handle the complex problems of international business, thus making international trade a lucrative profession. The job of a foreign trade expert is not limited to any specific segment such as marketing, documentation, shipping and packaging, or functions-related to export management, pricing, sourcing, costing, export market research, distribution, freight marketing, export finance, documentation and foreign exchange. It is a combination of all of the above and much more.
These professionals can get employment in both private and public sector. From banks, to manufacturing firms to government agencies, almost all industries having subsidiaries in other countries need people with a background in international business. Opportunities in merchandising companies, export units and the international business divisions of various MNCs are open to candidates of foreign trade. The responsibilities assigned to a professional in this area include documentation related to export/import and liaison with the tax and custom authorities. Their work also involves liasoning between exporters and port authority. Export managers and executives can find opportunities with insurance companies particularly marine insurance corporations where they are required to assess the loss or physical damage to the goods shipped in a country.
In the marketing field, there is enormous scope for export and import professionals. They are employed by the export houses for boosting overseas sales, searching new business hubs and potential markets abroad. Marketing executives also suggest strategies based on marketing research and predict demand and potential buyers abroad. They are also engaged in Customer Relationship Management (CRM). Trained professionals can also venture to open their own export houses after gaining adequate work experience.
Consultancy is one of the most sought after career for foreign trade experts. After gaining specialisation in international business from a reputed institute one can start a consultancy firm. An international business consultant is responsible for providing relevant information about foreign business investments, opportunities, competitive companies and even information about business practices and legal implications of owning a business in another country to their clients.
Candidates with qualification in international business along with a law degree, can find opportunities in the legal field to solve legal disputes among clients in different countries, particularly in legal affairs of international trade disputes ranging from patents, multilateral and bilateral trade agreements etc. Public sector offers jobs in the State trading Corporation (STC), Minerals and Metals Trading Corporation (MMTC) etc. One can also find positions in World Trade Organisation (WTO), United Nations Conference on Trade and Development (UNCTAD), International Monetary Fund (IMF), World Bank, Regional Trade Blocks and trade associations etc.
Enormous opportunities are available in teaching and research with management institutions offering courses in international business. Media reporting related to import export, and reporting of specific commodity in print and electronic media, can also be a good opportunity to young people having a flair for international business. Since most of the international trade is done through port and aviation, these professionals can work in airlines, cargo and global shipping companies. Moreover, they could join travel and tourism industry and foreign direct investment and economic development agencies.
Financial institutions, EXIM bank and various private and public banks with foreign exchange dealings as well as foreign banks appoint those specialised in international finance. International accounting is also an area where experts in accounting operations may be posted in multinational corporations and firms engaged in international business operations.
Institutes
There are several institutes in India which offer bachelors, masters and doctors degrees as well as diploma courses in International business/ foreign trade
Institutes in India
Distance Education
Institutes Abroad:
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