Jobs in International Business

As an International Business professor I have the opportunity to talk to hundreds of students with grandiose travel plans; most after they finish their degree and some through studying abroad. I commend these students as there is no textbook that can accurately teach the lessons learned while traveling abroad (for work or pleasure). I would even recommend taking out a loan to get the opportunity to study abroad as long as specific goals are set beforehand…but we will get to these in another blog.

I often ask my students what type of job they want after they graduate. The most frequent answer is “You know professor, a job in International Business.” This may even have been the answer that I gave my academic advisor when I was asked the same question (a long time ago). The problem is that International Business is a concept, not a profession. You do not graduate with a IB degree and have a job title called “International Business Expert” – although that would be a great job. So what types of jobs exist that allow you to travel?

The positions that I encounter the most often while traveling abroad include:
· Sales, sales, and more sales – mostly in B2B
· Project Manager – especially for oil and gas companies
· International Marketing Specialist
· Market Researchers
· Government and Nonprofit Organizations

Other related positions that could (or occasionally) travel:
· Accountants
· Consultants
· Store Managers
· Hospitality Industry Managers
· Investment Bankers
· Manager Trainees
· Political Risk Analysts
· HR Managers
· Public Relations Specialists
· Purchasing Agents
· Education
· Lawyers
· Production Engineers
· Finance Specialists
· Production Planners
· Logistics Experts

How do you find out about job opportunities? You can order our resource manual at https://www.smashwords.com/books/view/2321 (shameless plug). Or you can search these websites:
http://www.jobsoverseas.com/
http://www.4icj.com/
http://www.amanet.org/index.htm

Let me also add that international travel is not as glamorous as the concept. Vacationing abroad is one thing, but getting off a 14 hour flight, hoping into a taxi, sitting in traffic for an hour, delivering a presentation to prospective clients, then going out with prospective clients for a karaoke marathon session is another! Those who frequently travel to conduct international business do not usually have a lot of time to sight-see.

For more resources on living/traveling/studying abroad, download our Resource Manual for International Business at https://www.smashwords.com/books/view/2321 (another shameless plug).

Resource Manual for International Business

We have recently published a comprehensive resource manual for International Business. Whether you are a business professional in need of resources to gain market share abroad or are simply considering "going global", this manual will be useful. Whether you are a student working on a research project or deciding to study/work abroad, the 264 resources in our manual will help.

View our Resource Manual for International Business at: http://www.smashwords.com/books/view/2321

The Foreign Corrupt Practices Act

In international business, bribery often takes place to influence government decisions. In 1977, The Foreign Corrupt Practices Act (FCPA) was passed by the United States in order to combat the growing problem of bribery. The act made it illegal for U.S. companies to pay bribes to any foreign government officials or political parties. Today, the act also applies to any foreign firms operating in U.S. territory or quoted on any U.S. stock exchange.

One motive for bribery is to facilitate government services such as registrations, permits, and import clearances. The FCPA allows payments to officials in order to expedite services that are legal, but does not allow payments to officials who are not directly involved in a process. The reason for this is that some foreign governments will stall imports at customs indefinitely until they receive a bribe. The FCPA allows for the U.S. companies to bribe the customs officials in order to obtain import clearance. There are many critics of the FCPA who claim that U.S. companies lose business in foreign markets because competitors from other countries are allowed and even encouraged to make bribery payments. Recently, the FCPA has appeared to be an effective deterrent of bribery as many executives of large companies have either resigned or been fined by the U.S. government.

Written by Carl Phelps, Research Associate for GLOBAL ID LLC
For additional information, visit our website: http://www.globalidllc.com/

Regional Economic Integration

Regional Trade Agreements (RTA) were developed following the rise of Bilateral Agreements. RTAs are trade agreements that involve two or more countries confined to a common region. Countries in close proximity tend to form trade agreements because of similar consumer tastes and shorter travel distance. Two types of RTAs are Free Trade Agreements and the Customs Union. As regional economic integration reduces trade barriers; producing static and dynamic effects.

Static effects are efficiencies that are formed through trade creation and diversion. In trade creation, barriers are broken down and production becomes more efficient because of comparative advantage. Trade diversion occurs because trade shifts to the countries that are members of the RTA, even if non-member countries are more efficient with no trade barriers. Dynamic effects occur when the overall size of the market increases due to the elimination of trade restrictions. When RTAs are established, and trade barriers between the countries are eliminated, the size of the market for a particular company grows from its home country to include all of the RTA member countries.

By Carl Phelps, Research Associate for GLOBAL ID, LLC.

For additional information, please visit our website: www.identifyglobal.com

How Cultural Difference Affect Business

Cultural differences are one of the key components companies must consider when expanding abroad. Culture is made up of attitudes, beliefs, and values that are shared by a certain group of people. These behavioral differences greatly affect how businesses operate as companies need to be aware of many aspects within a particular culture. For example, different social class systems can change what types of people the company should use in their marketing campaigns in order to reach their target market. There are several cultural factors that companies should consider when conducting business in a foreign society:

• Performance Orientation
• Gender Attitudes
• Age Attitudes
• Family Attitudes
• Occupation Perception
  

Companies need to be aware of cultural differences both in how they market their product and in hiring their employees. Cultural differences can affect employee performance due to differences in attitudes such as motivation, expectation, and assertiveness. Generally, people of dissimilar cultures are motivated differently. Some are motivated by material goods whereas others may be motivated by leisure time. This is an important factor in learning how to get the most out of a group of employees who are ethnically diverse. In urban Chinese cities many laborers that have migrated from rural areas are more motivated by gift cards to McDonalds than by overtime or pay raises, this is because these migrant workers must send their money to the families in the country-side.

By: Carl Phelps, Research Associate for GLOBAL ID, LLC.

“Vietnam enters the WTO” – What could this mean for Your Company?

· Vietnam has the fastest growing economy in Southeast Asia, with a recorded growth of 8.4% in 2005 and a GDP growth of almost 50% over the last 5 years. The opening of the Vietnamese economy will create extensive opportunities for US companies.
· WTO accession requires the Vietnamese government to promote transparency and eliminate corrupt practices in its effort to participate in the global rules-based system – effectively reducing your investment risk.
· Vietnam has finalized intellectual property regulations and legislation that is concurrent with the TRIPs (Trade and Related aspects of Intellectual Property Rights) agreement administered by the WTO – safeguarding foreign companies from IP violations
· US companies will be able to pursue their rights through WTO dispute settlement and other WTO operations – promoting accountability and efficient dispute resolution process.
These are only some of the implications of Vietnam's accession to the WTO that could tremendously benefit your organization.

Written by Yeukayi Nenjerama - Facilitator of Sales and Marketing in Asian Cultures for Study Aboard.

Visit Our Website! www.identifyglobal.com

A Common Misconception

There is a common misconception by U.S. companies that lower wage countries are less productive when in reality the opposite is true. The higher rate of unemployment in many low-wage Asian countries, as compared to the U.S. rate of unemployment, means that manufacturing companies can be more selective about who they choose to hire. The higher rate of unemployment leads to a genuinely lower turnover rate. Therefore, companies can spend more money on training and development in their Asian subsidiaries and production facilities. The end result is not just lower wages, but also higher productivity than in the U.S.

Written by Kelly Kasic, President of GLOBAL ID, LLC

Visit Our Website! www.identifyglobal.com

Exporting May Not be the Best Option

There are several situations in which exporting may not be the most feasible form of entering a foreign market. If it is cheaper to produce the product abroad then it is more cost-effective to establish a manufacturing facility in the foreign market. This will be a more productive way to serve that market and its surrounding export markets. If the transportation costs of exporting to the foreign market are a high percentage of the manufacturing costs, then exporting won’t be very efficient. Keep in mind that the farther the market is from the home country, the higher the transportation costs and transportation costs can vary a lot depending on the product. If the product needs to be altered to better serve this foreign market, an additional investment might be needed. It may be more efficient to make this investment in the foreign market to save on transportation costs. Also, trade barriers play a huge role in deterring exports to foreign markets. If the market is large enough, it might be worthwhile to invest directly in these countries in order to bypass the trade restrictions. These are several situations in which exporting may not be the appropriate option for pursuing international business, however there are many factors that go into such an important decision.

Written by Carl Phelps, Research Associate for GLOBAL ID

To Learn More About Exporting and Other Options For Expanding Overseas, Visit Our Website: http://www.identifyglobal.com/