Career Opportunities

in International Business

(last modified 8/19/98)
 

Introduction

Today’s international arena offers numerous exciting and rewarding career opportunities for enterprising job seekers.  Unprecedented opportunities for individuals interested in finding international jobs and pursuing international careers are being rapidly created in response to new economic and political developments which are increasing international business activity, as described on the Web page entitled "Trends in International Business,"  which is part of the Gannon International Business Web site.  The most opportunities are in business, but there are also opportunities in academia as well as with other organizations.  The purpose of this Web page is to describe the job opportunities that are available in each of these three areas.  The Gannon International Business (IB) program, which is intended to prepare individuals for such careers, is described in "Gannon IB Program" part of  Web page.

Outline of topics

The topics contained in this document are as follows:

Summary

The most important results of this document for students considering a career in international business are as follows:

References

This document basically summarizes the material contained in the following sources, with the page references indicated in brackets [which are available from the Gannon IB program director upon request]:

International opportunities in business

Long term prospects

The long term prospects are highly favorable for jobs in international business.  As described and explained on the Web page entitled "Trends in International Business", international business activities are predicted to to increase steadily in amount and variety, particularly for US firms.  International trade will continue to increase in both volume and value in the future.  It can be expected that additional products will be traded internationally, that additional countries will become actively involved in international trade, and more industries and companies will be involved and with more locations in each country.  [Arpan, p. 30]  While it can be expected that multinational corporations (MNCs) will continue to dominate and orchestrate most international trade, it can also be expected that smaller firms will increase substantially their involvement in international trade due to increased world demand for products and services and their increased international business skills.

The future trends for foreign direct and portfolio investment also look promising.  [Arpan, p. 33]  US firms are also expected to increase their foreign investments, especially in East Asia, Europe, and Mexico.  [Arpan, p. 34]  Also expected to increase are new direct investments by comparatively smaller firms in the US that have increased confidence and need to invest abroad.

The increase in international business activity is predicted to create a growing demand for individuals who are properly educated and trained in the area of international business, including technical competence, foreign languages, cultural awareness and sensitivity, overseas experience, and familiarity with worldwide business practices and institutions.

Businesses employ the largest number of individuals in the international arena, and the proportion of international jobs in business relative to other areas should increase as, in a very short time, there has occurred a major shift in international jobs from government and development to business and entrepreneurism.  In the 1960s and 1970s, international jobs for Americans were most likely found with government, educational institutions, nonprofit organizations, and consulting firms specializing in problems of development in third and fourth world countries.  [ Krannich, p. 2]  These institutions and organizations hired large numbers of international specialists with backgrounds in agriculture, economics, anthropology, linguistics, and political science.  The government to government centered model of development that was in place at that time resulted in government to government transfer of resources via government organizations.  Today, however, the best international job opportunities are with  businesses of all sizes, large and small.

In the remaining sections of this part of the Web page, the following topics are considered:

Job opportunities with MNCS

Introduction

One business career alternative is to work for a large multinational corporation (MNC).  Most large MNCs have been involved in international business for some time and their involvement and needs of personnel will increase.

The following characteristics of job opportunities with MNCs are discussed below:

Overseas assignments

Some international positions with MNCs involve an overseas assignment.  US citizens on temporary assignment from the US parent company are called expatriates during the times they are working in one of the their company’s foreign subsidiaries.  Expatriates are typically utilized when they possess certain skills or experience that is not sufficiently available in a foreign subsidiary.  They are utilized by the company's headquarters to exercise greater control over foreign subsidiaries and to facilitate the coordination of subsidiaries’ plans and operations with those of the larger MNC.  In these respects, expatriates are involved directly and specifically in international business activities.  And to properly conduct their responsibilities, they should be bilingual, bicultural, and familiar with business practices and their firm’s operations in the foreign country and the US.  Other desirable characteristics for  those who may be involved in an overseas position are the following:  curious, flexible, adaptable, observant, open minded, love challenges and non routine situations, capable of handling risk, uncertainty, and frustration, patient, motivated, and self disciplined.  [Arpan, p. 53]

While ten or twenty years ago many large international companies sent mangers abroad to oversee their international operations, today fewer and fewer companies do.  [Krannich, p. 4-5]  Most companies with overseas operations prefer to hire citizens of the countries in which they are operating even if there are no legal requirements to do so since foreign citizens are less expensive, it is politically wise, and foreigners will not know as much about the country as employees who are citizens of the country.  Also, today, more and more locals have as much, if not more, international education, training, and experience as expatriates.

Geographic location of overseas positions

As far as the geographic locations of international business jobs involving an overseas assignment are concerned, most jobs will be increasingly available in the countries most heavily involved in international business.  As a result, jobs will be most available in industrialized countries that are already major players in international business such as the US, Japan, Canada, Australia, and those in Western Europe.  In addition, international business jobs will be found increasingly in newly industrialized countries, such as China, Korea, Taiwan, Hong Kong, Singapore, Brazil, India, and Mexico.  To a lesser extent, international business jobs will be found increasingly in other developing nations in the Pacific Rim, Latin America, the Middle East, Eastern Europe, and Africa (probably in this order).  More and more opportunities are available in Russia and the CIS. [Arpan, pp. 37-40]

In virtually all cases, most international business jobs will be located in urban areas, and the biggest percentage of these jobs will be located in each country’s largest cities.

Industries that are growing rapidly in terms of international business activities

Industries that are growing rapidly in terms of international business activities include the following:  electronics, telecom, pharmaceuticals, leisure products, and services.  Other industries likely to continue to experience good growth rates globally include chemicals, transportation vehicles and parts, health related industries, tourism, and many consumer products.  Note that all these industries generally involve products that are tied closely to economic development, growth in per capita income, and changing life styles. [Arpan, pp. 40-41]

Fastest growing international business specializations

The goal of a business is to provide a product or service to a customer.  The specific activities performed by a business can be broadly grouped into the following eight categories, or functional areas:  accounting, finance, purchasing, logistics, production, marketing, personnel, and management.  In most large businesses, a person tends to specialize and work in only one of these areas of activity.  In smaller firms, a person may be involved in more than one of these activities.  [Arpan, p. 11]

As a firm becomes involved internationally, these activities cannot be conducted in the same manner as if the firm only operated domestically.  In most cases, adaptations in these activities must be made to cultural, legal, political and economic differences between countries in order for them to be performed successfully.  [Arpan, p. 57]   The international dimensions related to each of the functional areas are complicated and challenging and therefore require individuals with more specialized skills and techniques and a more flexible outlook and attitude to perform them.  [Arpan, pp. 4-15]  Thus, in a large MNC, there are specialized international positions in each of these functional areas, such as international finance and international marketing.

While there will be increased opportunities in all the functional areas or specializations of international business, the fastest and biggest growth in international business jobs will probably occur in international finance and accounting.  International purchasing, marketing, and logistics are three other functional areas where more jobs are likely to exist in the future. [Arpan, pp. 41-43]

For a description of the functional areas of business and detailed information about the international dimension of each of these basic activities of business, including the complications and difficulties, and the type of people who may be bested suited for the different positions, the reader / viewer is invited to refer to Jeffrey S. Arpan’s Opportunities in International Business Careers, VGM Career Horizons, Chicago, 1995.

Financial rewards of an international business career

Salaries in international business have been rising as a result of increased international business activity increasing the demand for people suitably trained for international business careers, combined with a shortage of properly trained individuals.  [Arpan, p. 46- 48]

There is little data available on salaries for entry level positions in international business due to the reason that there are not as many entry level jobs in international business compared to the number of entry level jobs in the other functional specializations within business.  The best proxies for international business salaries are the salaries for the functional specializations, even though salaries for the latter tend to be lower than for jobs in specializations that are international in scope.  Refer to Arpan, p. 48 for starting salaries for functional areas of business.

Requirements for MNC positions

Specialized international business positions
The above mentioned specialized international business positions that are found in large MNCs  require a great deal of specialized education, preparation, training, and experience.  Many of these positions require a master’s degree.  Regardless of what subject one majored in as an undergraduate, most companies prefer a master’s degree in business.  [Arpan, p. 100]  In addition, many businesses promote employees to positions that involve international operations only after several years of progressive experience within the organization.  For the most part, companies hire people initially into one of the functional areas rather than directly into international positions.  After several years of proving themselves in a domestic capacity, these people become eligible for jobs with international responsibilities or aspects.
Entry level positions with MNCs
There are not many entry level jobs in the specialized areas of international business with MNCs, and there are even fewer for people with only undergraduate degrees.   Most entry jobs in international business for persons with undergraduate degrees initially involve working with export or import documentation, language translation, international shipping, sales, purchasing, or tourism.   [Arpan, p. 99]

Job opportunities with small and medium sized businesses

A second alternative within the business arena, and one more readily accessible to a person with an undergraduate degree, is to begin work at a small or medium sized business.  While all firms will be seeking internationally trained business executives to assist them with their international initiatives, this may especially be the case with small and medium sized firms ( hereafter referred to as s&ms).  As explained in the document / Web page entitled "Trends in International Business" [link], more s&ms have become involved in international business and more involvement is expected in the future.  The US Department of Commerce estimates that there are tens of thousands of small and medium sized US manufacturing firms that are capable of exporting but are not.  It is estimated by Gannon SBDC personnel that over 80% of these firms are scared to death about "going international," since it confronts the firm with a different external environment.  They know that they need to be involved in order to grow or just to survive.  Many of these firms will be seeking people to assist them in their international initiatives.

Not only are the small and medium sized businesses most in need of international expertise, but these are also the firms that have been doing most of the hiring recently and where the job opportunities in the future lie.  The large companies have been laying off.  While the largest 500 US corporations reduced their combined employment by 3 million workers in the 1980s, the total number of jobs in the US economy went up by 18 million, which means that 21 million new jobs were created, mostly by small businesses and new businesses.  [WSJ 10/14/96]

A survey of 919 small businesses by Arthur Andersen’s Enterprise Group, found that companies
with more than 100 employees that export are particularly likely to hire new workers.  [WSJ
8/2/95]

According to Ernie Post, former director of Gannon’s SBDC:  "Eighty percent of the new jobs in the last five years are from companies with fewer than a hundred employees - that’s a small business" [Nov 9, 1995 Gannon Knight].  The reality is that upon graduation, most undergraduate students today who elect to enter the work force directly are unlikely to assume major positions with multinational corporations upon graduation, but rather will go to work for smaller sized firms.

Very often, such firms have only recently developed an international outlook, and the new employee will arrive on the ground floor.  Initial involvement will normally be in exporting or purchasing, i.e., importing inputs that can be substituted for domestically sourced products.  One particular entry level position that may be available with a s&m with over $30M of sales is the assistant to the manager of the international department.  Some of the responsibilities of this position are the following:  international marketing research, creating an international marketing plan, preparing price quotations (for export sales) which would involve estimating cost, entering orders, processing orders, traffic, and dealing with logistics activities such as shipping, transportation, documentation, and other administrative matters.  With a very limited budget the assistant to the international manager will only occasionally visit foreign markets.  A person with the qualifications for such a position is referred to as a certified trade specialist.  This is one of the four or five positions most in demand by businesses today, according to a local international business consultant with 25 years experience.

As a training ground for an international business career, there probably is no better starting position.  This position could grow into into a marketing, engineering, or overseas position with the same firm, or promotion to director of the international division for a medium sized business.  Alternatively it could result in work with an export management or export trading company or as a private consultant, both of which resolve other people’s problems in the international arena. [CRM, 4E, pp. 759-767]  Thus, higher level entry level positions may be available in smaller companies involved in, or planning to become involved in, international trade than with MNCs.  [Arpan, p. 99]

Other business opportunities

While the best international job opportunities will be with companies of all sizes, large or small,  engaged in sourcing and selling products for international trade, businesses other than those directly involved in selling a product at which there may be international opportunities include the following:

Recommended undergraduate preparation for international careers

The most useful major for a career in international business is not one specific major but a multidisciplinary major or a double major with an international orientation.  To most internationally oriented companies, multidisciplinary degrees are considered better preparation and more desirable  than a degree in any single subject.  They are also considered better preparation for graduate programs in international business.  For entry level jobs an excellent preparation is a degree that combines international business and some other international field, such as Foreign Languages or international studies.] [Arpan, p. 99]

Before a student selects their area of specialization they should carefully weigh the advantages and disadvantages of specialization in international business versus one of the functional fields of business.  There are considerable advantages to developing a strong expertise in one of the functional areas in addition to a specific expertise in international business.  [Arpan, p. 56]  The choice of major depends on whether the student plans to subsequently obtain a graduate degree.

The Gannon International Business Program, a multiple disciplinary program, offers a double major with another business discipline, and is intended to prepare one for either direct entry into the work force, especially with a small or medium sized company, or to go onto graduate school for those seeking a specialized international position with a MNCs.

Academic career

For information on teaching opportunities in higher education, which require advanced degrees, the reader / viewer is invited to refer to Arpan.

International job opportunities with (non business) organizations

Numerous other positions are available at organizations other than businesses that sell a product, including hundreds of non profit organizations, educational institutions, international organizations, government agencies, and consulting firms .  [Krannich, p. 5]  The services provided by these international groups will be even greater in the years ahead.  These other organizations that are involved in the international arena and are noted for hiring individuals for international positions are discussed in the following sections.

US Federal Government

International positions with the federal government are numerous.  The largest number of international positions are with the following "big six" agencies:  Department of State, Department of Defense, US Agency for International Development (USAID), US Information Agency (USIA), Peace Corps, and Central Intelligence Agency (CIA).  Thousands of additional international positions are found with other federal agencies that have international interests, offices, and positions, such as EXIM, OPIC, and US International Trade Commission.

International organizations

International organizations provide numerous job opportunities for international specialists who are interested in a variety of issues relating to economic and social development as well as regional security.  The largest employer of international specialists is the United Nations bureaucracy and its complex of affiliated organizations.  Two other international organizations that employ international specialists include the World Bank and the IMF.   International organizations tend to hire professionals with a great deal of international experience and higher education degrees.

Associations, Societies, & Research Institutes

Unknown to many job seekers, industry and interest associations, societies, and research institutes, such as Amnesty International, and Center for Strategic and International Studies, offer numerous international opportunities.

Contracting & Consulting Firms

such as political risk assessment firms

Private Voluntary Organizations

Private voluntary organizations (PVOs), or what are referred to as non government organizations (NGOs), operate projects and manage staffs at the field level in third and fourth World countries.  They primarily provide assistance to various disadvantaged groups in developing countries.  [Krannich, p. 144]

In contrast to many organizations operating in developing countries, it is often easier to break into the international job market via PVOs and nonprofit corporations than through government agencies, international organizations, businesses, and private contracting and consulting firms.  Many of these organizations offer volunteer opportunities which enable inexperienced individuals to acquire valuable international experience which may turn into full time employment.  [Krannich, p. 146]

Other International organizations include the following:

Nonprofit corporations
Colleges and Universities
Teaching Abroad


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