Master the world of business

Usha Albuquerque

Today we live in a global world, with goods and services from across countries and borders being made available whenever and wherever we wish. Whether it is a Gucci bag, a BMW car or Chinese firecrackers for Diwali, all are easily available in India. As the seventh-largest economy in the world, India accounts for almost 5- 6 per cent of imports and exports traded worldwide with trading partners such as the European Union, China, the United States of America and the United Kingdom. This has been growing every year particularly with the dismantling of trade barriers under the new World Trade Organization (WTO) regime, and the signing of several new trade agreements, providing huge employment opportunities for those trained in export-import or international trade and management.

International trade promotes economic and trade relations between countries, and involves the marketing of products and services to and from other countries. This can include the production, packing, invoicing, insurance, custom clearance, legislation, risk assessment, surveying, foreign exchange management, merchandising, taxation, transporting, shipping and marketing of products, and the promotion of a variety of services, both technical and non-technical to other countries. Moreover, various trading partners/countries are involved in the complex trade activities with differing export-import policies, custom agreements, documentation requirements, quality control concerns, standardization and other micro/ macro economic considerations. 

The range of products and services, too, are varied —  from raw agricultural commodities like grain and sugar to oil and machinery, and from high value precious items like jewellery, garments, handicrafts and textiles to IT services, drugs and chemicals — requiring a  wide range of professionals, from specialists in the area of the commodity being exported or imported, to export management professionals knowledgeable in the intricacies of international markets, shipping, documentation and so on.

Areas of work

There are broadly two specialised areas of work in International Trade — International marketing and Export documentation. 

Export Managers are responsible for selecting exportable merchandise for exports and for purchasing the raw material for manufacturing a product. They handle matters relating to exports, export incentives, drawbacks, and credits, and are also responsible for dealing with buyers/agents in local and international markets.

Export and import of any goods require vast and complicated documentation and strict procedures to be followed keeping in mind the Indian and international laws.

Broadly the various tasks in this field include that of:

• Research and tracking of products which can be exported from one country to another
• Identification of markets in countries, or regions for various goods and commodities
• Identification of buyers in foreign markets
• Dealing and negotiating with foreign buyers
• Drawing up trade contracts with foreign buyers
• Production or procurement of goods for export
• Planning of logistics for delivery
• Handling the documentation  necessary for export/import
• Working along with other agencies such as freight forwarding, excise and customs, shipping and transport, port authorities etc
• Monitoring payments 

As the work in International trade covers a huge area of specialised activities, there are many other professionals also working in this field. These include :

Freight forwarding and customs clearing agents: They handle documentation requirements, planning and implementing logistics and co-ordinating between the clients and the other agencies involved, handling payment obligations, valuation of goods for excise and customs duties etc.  

Customs agents: They file appropriate documents and act as intermediaries between exporters/ importers and government departments

Exim agents: They act as agents or trade representatives of foreign companies, identify importer of goods and help negotiate deal between two parties, and complete customs formalities and so on. 

Channelising Agencies are appointed by exporters to minimise expenses and overcome problems of language, government rules and regulations. The channelising agencies like the State Trading Corporation (STC) enroll exporters as business associates to supply goods for export. 

Inspectors work independently or with an organisation and are responsible for the quality control of the product to be exported. They check the samples of raw materials and the quality of the finished product, to ensure that it meets international standards. 

Job prospects

For those looking for work experience and exposure before jumping into this field, a good place to start could be as a fresher with a freight forwarder or customs agent. Here you will learn logistics, domestic and international, air and ocean brokerage, documentation related to export/import and liasoning with the tax & custom authorities and so on, which can prepare you for a career in this field in the future. 

With a professional degree in International Business, you can get yourself a good job in export and merchandising companies, and international business divisions of various multinational corporations. There are also openings with export units and  companies that import or export goods, and with transport and shipping companies, and marine insurance corporations handling the loss or physical damage to the goods being shipped. Retail houses involved in import of various products and those in IT export also require graduates on international business. 

In the government sector, opportunities exist in channelising agencies such as the State Trading Corporation (STC) and the Metals and Minerals Trading Corporation (MMTC). 

Other opportunities are those with international business and trading institutions such as  WTO, IMF, World Bank, UNCTAD, and international trade associations. 

With the rapid growth of shipping and the complexities of international trade there are also opportunities for lawyers, financial and other business specialists with a qualification in international business. The demand for Indian specialists in South East Asia, Europe and the Middle East is also increasing. A large number of people, after some years of experience, also do open export houses of their own.

So, if you are looking to give wings to your ambitions, international trade may guide you towards an exciting take - off!

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Getting in

To work in international business you need to be qualified in the area of the product or service being exported/imported, whether in fashion goods, jewellery or IT software, or have training in International Business / or Foreign Trade. As most of the sought after International Business/Foreign Trade programmes are offered at post-graduate level, graduation in any discipline is the basic eligibility criteria for the two-year PG diploma in International Business. Many candidates, therefore, combine graduation in fashion, IT, engineering, garment merchandising, law, shipping, commerce or finance with a post-graduate degree or diploma in international trade/business. Selection is mainly through an entrance exam, followed by group discussions and a personal interview. Diploma, certificate and online courses do not require graduation. 

Most courses in international trade or export-import management familiarise students with the fundamentals of international business such as international marketing, banking, foreign exchange management, export-import policies, economics and commercial law, shipping documentation, marine and cargo insurance etc. 

Skill set

However, in addition to academic qualifications among the qualities required to be successful in International Business are good communication skills, business aptitude, persuasive ability and confidence. Fluency in a foreign language can be a great asset particularly if you are interested in international marketing, searching for new business opportunities and building international business relationships in potential markets abroad. 

Where to study

There are several institutes offering programmes in International Business, or Foreign trade. These include the Indian Institute of Foreign Trade (IIFT), New Delhi, and several of the B-schools which offer  the 2-year, full time Master's programme in International business. There are also a number of courses — diploma, certificate and online courses being offered by several institutes such as the Indian Institute of Export and Import Management in Mumbai, Indian Merchants Chamber, Mumbai and others. The Delhi School of Economics offers a 1-year P G diploma in International marketing, Punjab University offers a 1-year PG diploma in International Trade and other courses include those at Gujarat University, University of Madras, Mumbai University, Pune University, Kurukshetra University, and distance programmes at IGNOU,  BR Ambedkar University, Kota University and Karnataka State Open University.

Institute watch

• The Indian Institute of Foreign Trade, New Delhi;
• Delhi School of Economics, Delhi University;
• Indian Institute of Export Management, Bangalore
• Indian Institute of Export and Import Management, Mumbai 
• Indian Merchants Chambers, Mumbai
• Indian Institute of Commerce and Trade, Lucknow
• Punjab university, Chandigarh;
• Kurukshetra University, Haryana
• Gujarat University, Ahmedabad;
• University of Madras, Chennai.
• Export Import Bank of India(EXIM Bank)