International Management in the MBA Classroom

International management is becoming an integrative part of the curriculum as opposed to a stand- alone concentration previously featured in MBA programs.

Traditionaly, core MBA subjects exposed students to the fundamentals of business operations including marketing, finance, organizational behavior, and strategy. Today, the modern landscape for corporates has changed significantly in the past few decades and even local businesses are influenced by environmental conditions on a global scale.

To continue to be relevant, MBA programs have adapted ensuring that the traditional core activities be considered from a global perspective. Most modern MBAs study international management from within and as a part of the core curriculum; many also offer stand-alone elective concentrations as well.

International management and the MBA

Borders no longer serve as barriers, and most developed countries would now be considered multicultural with corporations becoming far more internationalized. It’s not surprising then that recruiter surveys highlight ‘global mindedness’ as a necessary attribute of graduates in addition to technical skills and knowledge, or that students themselves are increasingly favouring international programs far from their own backyard.

Understanding the vital role that international trade plays in the world economy and the resulting implications for business is a key objective for an MBA student. Accommodating globalization, dealing with the world financial crisis, and achieving sustainable development are among the major challenges facing the world economy. The international trading system for example, is central to successfully addressing these and other global challenges.

MBA programs offering an integrated core suite of programs that include international management principles as well as stand-alone courses enabling specialization are proving popular with MBA students. MBA elective courses such as the following facilitate a deeper understanding of international management.

Business and world trade

Business and world trade examines the world trading system, how it operates, how trade liberalization is negotiated, and how the rules for trade are established and enforced.

Particular attention is paid to the prospects for future liberalization in agriculture, manufactured goods and services. In this context the state of play in the current round of trade liberalizing negotiations – the Doha Round – is highlighted.

These negotiations, launched in 2001, are far-reaching and have the potential to greatly change the structure of world production and trade. This course is inter-disciplinary and very much oriented towards current affairs. Topical case studies are examined to emphasize the economic, political and social importance of the trading system as it operates today.

These include:

- the role of trade in economic development;
- the impact of the growth of regional trade agreements on world trade;
- why the liberalization of agriculture trade is so difficult to achieve;
- transatlantic disputes such as the Boeing-Airbus dispute;
- implications for business with China joining the World Trade Organization (WTO);
- how liberalization of trade in financial services is negotiated;
- why many see trade rules as the means to enforce climate change obligations;
- WTO rules on patent protection and the social implications (limited access to essential medicines for impoverished people for example);
- the critical role of the WTO in sustainable development.

Industry studies

A core element of Industry Studies in Asia at Melbourne Business School is a field study in Shanghai where students undertake first-hand investigation of a designated industry. Prior to this they complete secondary research which prepares them for the trip.

A large part of the learning is self-directed and students work together in syndicates. This practical subject enables students to obtain in-depth insights of a major Asian business centre. They develop secondary research skills as a basis for identifying challenges and opportunities confronting selected industries in diverse contexts, and deepen their understanding of cross-cultural business operations. They develop an understanding of the relationships between the macroeconomic environment, political systems and cultural dynamics and business opportunities, structure and process.

The internationalization of business demands a sound working knowledge of the principles of international finance and the operation of international financial markets.

Developments in international financial markets increasingly impinge on domestic economics and business conditions as well as the environment within which global business is conducted. International finance aims to introduce students to the international markets in which firms operate, and to provide an understanding of the important international economic factors and relationships that can affect a multinational firm. They gain an understanding of how these have evolved, and learn to appreciate the complexity of exchange rate mechanisms and cross-border flows of funds. They also develop an understanding of the main instruments traded in international financial markets and how they can be used to exploit cross border business opportunities.

International marketing

International marketing examines the complexities of developing and implementing successful marketing strategies in an international context.

Emphasis is placed on current research and examples, as well as cases that explore international marketing issues in depth. Students develop an understanding of how environmental differences influence the development, implementation and success of marketing strategies. They learn to have a critical appreciation of the internationalization process, and to critically evaluate different foreign market entry modes and their implications for marketing strategy. The complexities of standardizing and adapting marketing strategies across countries and how marketing operations can be best managed is also examined.

It’s important to realize that learning in an international MBA classroom is diverse and multifaceted. True engagement with the subject is the product of a number of modes of learning. These include classroom learning, peer group interaction, diverse class composition and for many, international study options.

Mark Crosby is associate professor of Economics and associate dean (International) at Melbourne Business School, Australia.