With India’s total import-export value pegged at $201 billion in the first quarter of FY 2019-20, international trade is booming for India. Such rapid growth, along with increasing connectivity between countries and firms indicates that today’s businesses are aggressively looking for expansion on a global scale.
Besides the sky-rocketing trade numbers, frequently changing trade agreements and bilateral relationships are also playing a crucial role in the current business environment. Take, for example, the recent decline of yuan (Chinese currency) due to the US-China trade war which led to a ban on several Chinese products exported to the US.
Among the many trade war ramifications, the one which can actually benefit India is Jewellery and Gems. Chinese jewellery is not welcomed anymore in the US. So, Indian jewellers should seize this opportunity and boost their supply to meet the ever growing demand, profiting massively from the embargoes.
Advancement in technology is blurring international borders and facilitating smooth conduct of the business on a global scale, as a result of which the line between domestic and international business is fading away. If a business wants to grow, it has to opt for global markets.
As companies start making social and financial interactions via digital mediums, the opportunities arising are easy to identify and easier to act upon. In this ‘Global Village’ scenario, professionals with a thorough knowledge of international trends are proving to be a cut above the rest. Therefore, employers today look out for individuals who can recognise opportunities and help businesses expand at breakneck speeds going forward.
In the present context, professionals with knowledge of international business is always advantageous. For example, the smartphone on which you’re reading this blog has components produced in one part of the world, assembled in another part of the world and eventually being shipped off to a retail store near you. The idea behind building such complicated supply chains is to source the best materials at the lowest price and thereby optimising resources and achieving efficient operations. In such a business scenario, knowledge of various labour laws, trade agreements, analytics, IoT, etc. play a key role and gives the candidate an edge over others when it comes to hiring of fresh talent.
It is also important to be aware of technology innovations that are unfurling globally. From processes to products, Industry 4.0 has seen innovations like never before. Companies have been scaling faster, and technology is getting cheaper, all in the blink of an eye. Due to advancements in production, payments, development, analytics, etc., decision-making and implementation have become faster and a professional who’s updated with the latest trends in technology can help businesses take advantage of the same and get ahead. The cab-aggregator industry, an industry which has sky-rocketed in revenues in the past decade, is a brilliant example of new-age technologies and its impact on business. It was just one innovation that led to identification of opportunities by several players, and created billion-dollar giants like Ola, Uber etc. Staying updated with such innovations is key to growing businesses. And help them reach meteoric heights.
Mitigation of risk is the key requirement for any business. Policy changes or fading trends in a market often end-up taking down an entire industry. This is when the presence of business in multiple markets proves advantageous. An extensive geographical presence means your risk is spread over, and hard times can be managed much more efficiently. So, having insights regarding market trends prove highly useful to manage risks effectively. For example, Rajasthani quilts are not only sold in India, but have good potential in Europe. Thus, if the demand lowers in India, manufacturers may explore European markets and will not run out of business immediately.
Working in the international arena has its own advantages like; traveling to different regions, meeting people from diverse background and culture. This helps you become a socially conscious global citizen.
Professionals with expertise in international business hold invaluable positions in companies. Job profiles such as Risk Auditor, Business Analysts, Business Development executive, Pre-sales executive, Management Consultant, among others are readily available to a professional who has knowledge of international business in sectors like IT / BFSI and manufacturing domains.
If you still think you don’t need to follow IB trends, here’s a quote – “Knowledge of sales, marketing, finance will help you build a profitable business. Knowledge of international business trends will help you build an MNC.”
Authored by Dr. Asmita Chitnis, director, Symbiosis Institute of International Business (SIIB).