The Dynamic Interplay of Politics and International Business

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In today’s interconnected world, international business is not only influenced by market forces and economic conditions but also by the ever-changing landscape of global politics. Governments play a pivotal role in shaping policies that directly impact businesses operating across borders. The dynamics of political alliances, treaties, sanctions, and trade agreements can either facilitate smooth operations or introduce significant challenges for multinational corporations.

1. Political Stability and Economic Policy

Political stability is a cornerstone for economic growth and investment. Stable governments typically foster favorable business environments characterized by predictable regulatory frameworks, consistent policies, and reliable institutions. These factors attract foreign direct investment (FDI) and encourage businesses to expand operations within a country.

Photo by Mr Cup / Fabien Barral on Unsplash

Conversely, political instability, coups, civil unrest, or regime changes can disrupt business operations significantly. MNCs often face heightened risks such as asset seizure, contract renegotiations, or even nationalization in politically unstable regions. The uncertainty generated by such events can deter investment and force businesses to reassess their strategies or withdraw from affected markets.

2. Trade Policies and Tariffs

Governments wield significant influence through trade policies and tariffs, which directly impact the cost competitiveness of goods and services in international markets. Trade agreements, such as free trade agreements (FTAs) or customs unions, aim to reduce tariffs and trade barriers, facilitating smoother trade flows and market access for businesses.

Photo credit: Canva.com

However, shifts in political alliances or the imposition of tariffs and trade restrictions can disrupt established supply chains and increase costs for MNCs. For instance, trade tensions between major economies like the United States and China have led to tariff escalations, affecting industries reliant on global supply chains and influencing investment decisions.

3. Geopolitical Risks and Security Concerns

Geopolitical factors, including international conflicts, terrorism, and regional tensions, pose significant risks for businesses operating across borders. These risks manifest in various forms, from physical threats to infrastructure and personnel, to regulatory changes aimed at enhancing national security.

Photo by Cole Keister on Unsplash

For example, sanctions imposed by one country against another can limit trade and financial transactions, impacting businesses with operations or interests in the targeted region. MNCs must navigate these risks by conducting thorough risk assessments, implementing robust security measures, and diversifying their operations to mitigate potential disruptions.

4. Influence of Political Alliances and Regional Integration

Political alliances and regional integration efforts, such as the European Union (EU) or ASEAN (Association of Southeast Asian Nations), create integrated markets with standardized regulations and reduced trade barriers. These agreements offer businesses economies of scale, access to larger consumer markets, and streamlined regulatory processes.

Photo credit: Canva.com

However, the stability and coherence of such alliances can be fragile, subject to shifts in member countries’ political priorities or external pressures. The Brexit referendum and subsequent negotiations underscored the complexities and uncertainties surrounding regional integration, impacting businesses across Europe and beyond.

Strategies for Businesses

In response to the dynamic interplay of politics and international business, companies adopt several strategies to manage risks and capitalize on opportunities:

  • Political Risk Assessment: Regular assessment of political risks in target markets informs strategic decision-making and risk mitigation efforts.
  • Diversification: Diversifying markets, suppliers, and investment portfolios reduces dependency on any single market or region prone to political instability.
  • Government Relations: Engaging with government officials, policymakers, and industry associations enables businesses to advocate for favorable policies and influence regulatory outcomes.
  • Adaptability and Resilience: Building flexibility into supply chains, operations, and strategic planning allows businesses to respond swiftly to political developments and mitigate disruptions effectively.

Here are some examples to illustrate how changing governments and political alliances have impacted international business:

US-China Trade Relations: The trade war initiated by the Trump administration against China significantly affected global supply chains and business strategies. Tariffs were imposed on billions of dollars worth of goods, prompting companies to reconsider manufacturing locations and supply chain logistics to mitigate increased costs. The phase one trade deal signed under the Biden administration brought some relief but tensions continue to shape global trade dynamics.

Photo credit: Canva.com

Brexit and Its Impact on EU-UK Trade: The United Kingdom’s decision to leave the European Union (EU) through Brexit introduced complexities for businesses operating across the UK and EU. Industries heavily reliant on frictionless trade faced disruptions due to new customs checks and regulatory requirements. Companies had to navigate new trade rules, tariffs, and supply chain adjustments, impacting sectors from automotive to financial services.

Russia-Ukraine Conflict and Sanctions: Geopolitical tensions between Russia and Ukraine have led to sanctions imposed by Western countries, targeting Russian individuals, businesses, and sectors such as finance, defense, and energy. These sanctions restrict trade and investment activities, affecting multinational corporations with operations or interests in Russia and Ukraine, and prompting them to reassess their risk exposure and operational strategies.

Photo by Artur Voznenko on Unsplash

Impact of COVID-19 Pandemic: The global pandemic underscored the vulnerability of supply chains to disruptions. Governments implemented various measures, from travel restrictions to export controls on medical supplies, affecting international trade and business operations. Companies had to quickly adapt by diversifying suppliers, revising logistics strategies, and navigating fluctuating demand patterns amidst evolving government responses.

Trade Agreements and Regional Integration: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) are examples of recent trade agreements that aim to enhance economic cooperation among member countries. These agreements create opportunities for businesses to access new markets with reduced trade barriers, fostering economic integration in the Asia-Pacific region.

Navigating the intersection of politics and international business requires agility, foresight, and a deep understanding of global dynamics. Businesses that proactively manage political risks, leverage opportunities presented by regional integration, and maintain robust government relations are better positioned to thrive in an increasingly complex global economy. By staying informed, adaptable, and strategically proactive, MNCs can navigate the challenges posed by changing governments, political alliances, and geopolitical uncertainties while capitalizing on new opportunities for growth and expansion.

Join our Masters programme in business and kickstart your career to another level. Talk to one of our education advisor to know more about the admission process, fee structure and intake information.

Navigating the Future: Top 5 Trends to Expect in 2024

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As we step into the promising realm of 2024, the world is poised for transformative changes across various domains. Technological advancements, societal shifts, and global challenges are shaping the landscape of the future. In this blog post, we’ll explore the top five trends that are likely to define and influence the year 2024.

The Rise of Sustainable Technology

One of the most significant trends to watch in 2024 is the accelerated adoption of sustainable technologies. With a growing awareness of climate change and environmental issues, industries are increasingly investing in eco-friendly solutions. From renewable energy sources like solar and wind power to electric vehicles and sustainable packaging, technology is playing a pivotal role in creating a greener and more sustainable future. Expect to see breakthroughs in clean energy, efficient waste management systems, and innovations that contribute to a circular economy.

The Evolution of Artificial Intelligence (AI) and Automation

AI and automation have been on an upward trajectory for several years, and 2024 will see these technologies reaching new heights. Intelligent automation, machine learning, and natural language processing will become more sophisticated, leading to increased efficiency across various industries.

From personalized customer experiences to streamlined business operations, AI will continue to transform the way we live and work. However, ethical considerations and responsible AI practices will also become crucial topics of discussion, ensuring that these technologies are deployed ethically and inclusively.

Digital Health Revolution

The global pandemic has accelerated the digitization of healthcare, and in 2024, we can expect a digital health revolution. Telemedicine, wearable health tech, and AI-driven diagnostics will become more prevalent, offering personalized and accessible healthcare solutions. Remote patient monitoring, virtual consultations, and health-focused apps will empower individuals to take control of their well-being. The integration of big data in healthcare will enable predictive analytics, leading to more effective disease prevention and early intervention strategies.

Decentralized Finance (DeFi) and Blockchain

Decentralized Finance (DeFi) and blockchain technologies are poised to disrupt traditional financial systems in 2024.

Blockchain’s transparent and secure nature will continue to gain traction in sectors beyond cryptocurrency, such as supply chain management, voting systems, and identity verification. DeFi, which leverages blockchain to recreate and improve upon traditional financial services, will provide more inclusive and accessible banking solutions. Expect innovations in decentralized exchanges, lending platforms, and new financial instruments that challenge the status quo.

Cultural Shifts in Remote Work and Flexible Work Arrangements

The way we work underwent a profound transformation during the pandemic, and in 2024, we will witness a continuation of this trend. Remote work and flexible work arrangements will become more ingrained in corporate cultures. Companies will focus on optimizing hybrid work models, leveraging advanced collaboration tools, and prioritizing employee well-being. The physical office space may undergo a reimagining, serving as collaborative hubs rather than mandatory daily destinations. This shift will impact not only how businesses operate but also the work-life balance and career expectations of individuals.

The year 2024 promises to be a dynamic and transformative period marked by advancements in technology, a heightened focus on sustainability, and a reshaping of societal norms. From the rise of sustainable technology to the evolution of AI, digital health, blockchain, and changes in work dynamics, these trends will shape the way we live and interact with the world around us. As we navigate through these transformative times, it’s essential to embrace innovation responsibly and ensure that progress benefits all of humanity. The future is exciting, and staying informed about these trends will help individuals and businesses adapt and thrive in the years to come.

Navigate your future towards stability, success in your career by joining our online Master’s and PhD. programme. Speak to one of our advisors to know more about the admission process, intake information and fee details.

Unveiling the Tapestry of 2023: Top 10 Highlights That Defined the Year

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As we bid farewell to 2023, it’s time to reflect on the myriad events and milestones that shaped the course of the year. From technological breakthroughs to cultural shifts, 2023 was a rollercoaster of innovation and transformation. In this blog, we’ll unveil the top 10 highlights that stood out and left an indelible mark on the fabric of 2023.

1. Quantum Computing Breakthroughs

In 2023, quantum computing made unprecedented progress, reaching the milestone of quantum supremacy. This achievement has far-reaching implications, promising solutions to intricate problems at speeds unimaginable with traditional computers, particularly in fields like cryptography, drug discovery, and climate modeling.

2. AI’s Influence in Healthcare

Artificial Intelligence continued its penetration into the healthcare sector, reshaping diagnostics, treatment strategies, and patient care. AI-driven tools showcased remarkable accuracy in early disease detection, personalized treatment plans, and overall healthcare enhancement.

3. Global Climate Accords

As climate change concerns reached a critical juncture, nations around the world came together in 2023 to forge ambitious global climate accords. Commitments to reduce carbon emissions, transition to renewable energy sources, and protect biodiversity marked a collective effort to address the urgent challenges posed by climate change.

4. Space Tourism Takes Off

The space race evolved into a new era in 2023, with commercial space tourism becoming a reality. Several private companies successfully launched missions, enabling civilians to partake in the adventure of space travel. This marked a significant stride in making space exploration more accessible to the public.

5. Metaverse Surge

The concept of the metaverse gained unprecedented traction in 2023. Major technology companies invested heavily in virtual reality (VR) and augmented reality (AR), creating immersive digital realms for work, socializing, and entertainment. The metaverse emerged as a hub for innovation and collaboration.

6. Advancements in Biotechnology

Biotechnology made groundbreaking strides in 2023, with advancements ranging from CRISPR-based gene editing to revolutionary treatments for previously incurable diseases. These breakthroughs raised ethical questions but also offered new hope for addressing genetic disorders and improving overall human health.

7. Shifts in Remote Work Culture

The way we work underwent a transformative shift in 2023. Remote work, once a necessity, became a preferred mode for many companies. This change not only impacted work culture but also influenced urban planning, as cities reimagined themselves to accommodate a more decentralized workforce.

8. Renewable Energy Dominance

Renewable energy continued its ascent in 2023, surpassing expectations in terms of efficiency and affordability. Solar and wind power, in particular, became dominant sources of energy globally, contributing to a significant reduction in reliance on fossil fuels.

9. Tech Ethics and Regulation Focus

Amid rapid technological advancements, there was an increased emphasis on ethical considerations and regulatory frameworks in 2023. Governments and tech companies collaborated to establish guidelines for responsible AI use, data privacy, and digital security, ensuring a balanced approach to the benefits of technology.

10. Global Health Resilience

The lessons learned from the COVID-19 pandemic led to unprecedented collaboration in global health in 2023. This resulted in more robust health systems, improved vaccine distribution, and enhanced preparedness for future health crises.

Photo credit: Canva.com

As we conclude the narrative of 2023, these ten highlights underscore the innovation, adaptability, and collective endeavors of humanity. The year was characterized by a fusion of technological breakthroughs, societal transformations, and a shared commitment to addressing global challenges. These standout moments will undoubtedly shape the trajectory of the years to come.

Here’s wishing all our readers, from the management and staff of Robert Kennedy College, a very Happy New Year 2024! We hope to see you as one of our proud Master’s and PhD students at RKC. Find a programme suitable to you, talk live to one of our education advisors, and apply now!


   

   
   


   


   

What are the economic predictions for 2023?

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The last few years have been like a foggy, fading memory, from the Covid-19 pandemic to the US Capitol attack in 2021 to Russia’s invasion of Ukraine in 2022. Who would have thought about these events’ disastrous effects on our lives?

Advent of Covid-19 in 2019 impacts our lives even 3 years later. Photo credit: Canva.com

And with not much relief from the dire repercussions of the last three years, the impact of these events on our lives continues in 2023 as well.

What does this mean for the world economy?

I am not an economist. I work and run a family. But I understand simple economic terms and their co-relationships. I can do the math when I see increasing grocery bills, and my household income remains unchanged. I feel the pinch on my wallet, and I know I cannot afford to indulge in any ‘extra’ luxuries anymore as I have bills to pay and ends to meet.

In layperson’s terms, the 2023 economy can be described as a chain reaction of the following events:

Spiked inflation levels – Raised interest rates – Fall of GDP/economic growth – Fear of spreading recession

Interest rates are increasing due to high inflation. Photo credit: Canva.com

Let’s understand what inflation is.

Inflation is a measure of the rate at which the general level of prices for goods and services rises, and purchasing power falls. Various factors, including economic growth, interest rate changes, and supply and demand shifts, can cause inflation.

Common causes of inflation

  1. Economic growth: There is an increased circulation of money as a country’s economy grows and expands. This increased money supply can increase prices as businesses raise prices to take advantage of the extra demand. Additionally, wages tend to rise as the economy grows, which can contribute to higher prices.
  2. Changes in interest rates: When interest rates are low, it is cheaper for businesses and individuals to borrow money, which can increase spending. This increased spending can cause prices to rise as companies raise prices to take advantage of the extra demand. On the other hand, borrowing becomes more expensive when interest rates are high, leading to decreased spending and lower prices. 
  3. Shifts in supply and demand: When demand for goods and services is high, businesses may raise prices to take advantage of the extra demand. Conversely, companies may lower their prices to attract customers when demand is low. Additionally, when the supply of goods and services is low, prices may rise due to the limited availability of goods and services. On the other hand, when the supply is high, prices may decrease as businesses try to attract customers.
  4. Natural disasters, wars, and government policies: Natural disasters can lead to higher prices for goods and services as businesses struggle to keep up with the extra demand. Government policies, such as printing money or increasing taxes, can also lead to inflation. Wars can cause inflation as governments increase spending to fund the war effort.

    Understanding the causes of inflation is essential to manage its effects on the economy better.
Shifts in demand and supply causes inflation. Photo credit: Canva.com

Types of Inflation

  1. Cost-push inflation: This occurs when production costs increase, leading to higher prices for goods and services. For example, if the cost of raw materials or labour increases, businesses may pass on those costs to consumers through higher prices. This can also happen due to increases in taxes, tariffs, and regulations.
  2. Monetary inflation: This occurs when there is an increase in the money supply, which can lead to higher prices as more money chases the same amount of goods and services. This can happen if a central bank, such as the Federal Reserve, increases the money supply through monetary policy.
  3. Expectations of inflation: Inflation can also occur if people expect prices to rise. This can happen if they think that the economy is growing too quickly, interest rates will increase, or due to any other reason. If people expect prices to rise, they may start to spend more money now, which can lead to actual inflation.
  4. Imported inflation: This can happen when a country experiences inflation due to the increased prices of imported goods. For example, if the value of the country’s currency decreases, imported goods will become more expensive, leading to higher consumer prices.
  5. Foreign inflation: This refers to the inflation that occurs in a country due to inflation in other countries. For example, if a country’s main trading partners experience inflation, it may increase the prices of imported goods and services, which in turn can cause inflation in the country.

How inflation can be controlled

Changes in Monetary policy can help curb inflation. Photo credit: Canva.com
  1. Monetary policy: Central banks, such as the Federal Reserve in the United States or the European Central Bank, can control inflation by manipulating interest rates. When interest rates are high, borrowing becomes more expensive, decreasing spending and lowering prices. On the other hand, borrowing becomes cheaper when interest rates are low, leading to increased spending and higher prices. Central banks can also use other monetary policy tools, such as open market operations, to control inflation.
  2. Fiscal policy: Governments can also control inflation by using fiscal policy, which includes government spending and taxation. For example, if the government increases taxes, it can decrease spending, which can help reduce inflation. On the other hand, if the government increases spending, it can increase demand for goods and services, which can cause prices to rise.
  3. Supply-side policies: Governments can also use supply-side policies to control inflation. For example, suppose the government reduces regulations and taxes. In that case, it can make it easier for businesses to produce goods and services, increasing the supply of goods and services and helping to keep prices low.
  4. Incomes policies: Governments can also control inflation by using income policies, which aim to control wage and price increases. For example, the government can impose wage and price controls, which can help to keep prices low. 
  5. International coordination: Inflation can also be controlled through international coordination. For example, if a country’s trading partners are experiencing high inflation, it can increase the prices of imported goods and services, which in turn can cause inflation in the country. In such cases, governments can coordinate with other countries to stabilize prices.

Inflation can have various economic effects, such as reducing purchasing power, making exports less competitive, and increasing the risk of recession. Central banks and government try to balance stable prices and economic growth. It’s essential to understand the causes of inflation to create policies that can mitigate its adverse effects and maintain economic stability.

Inflation can lead to recession. Photo credit: Canva.com


Controlling inflation is not always easy and can have negative consequences, such as reducing economic growth, increasing unemployment, and creating imbalances in the economy. Therefore, central banks and governments usually aim to balance stable prices and economic development and use different tools and policies to achieve that balance.

It seems like inflation is here to stay in 2023 for most of us from a global perspective, as the underlying problem of imbalances in the supply chain persists. And world leaders have thought of reducing overall economic activity as the answer to the inflation problem. And as the ripple effect stems from reduced spending, a recession is soon knocking on our doors. Watch this space as I discuss the recession in next week’s blog.

FIVE Benefits of studying for a degree in International/Global Management

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In today’s global economy, we take international brands/companies setting up shop locally for granted. And for most of us, it does not matter what went on behind the scenes to enable that company/brand to choose a location.

Today’s global economy with multinational brands. Photo by Nik Shuliahin 💛💙 on Unsplash.

There are many challenges and considerations that a company takes into account when opening any new location, especially when opening a new international location.

A programme in international business will help students develop key skills in various business disciplines, such as supply chain, human resources, marketing, finance, etc., within a global context, thereby helping students gain a global perspective to be successful in business.

Most of Robert Kennedy College’s (RKC) 100% online programmes focus on the international aspect of business management. The following are five reasons why you should consider doing a programme that focuses on the international aspect of business management.  

1. An international perspective

Photo by Nadine Shaabana on Unsplash.

Businesses face many challenges, but when viewing these challenges with a global lens, each of these challenges takes on characteristics that are unique to the country. The programme will better prepare students to tackle these challenges, giving them the knowledge to understand different perspectives and problem-solving skills with a broadened worldview. Another advantage of doing a programme with a global context is the knowledge and skills learnt can easily be used when managing local businesses as well. 

2. Learn new skills

Photo by Tim Mossholder on Unsplash.

Like any graduate programme, students will gain new knowledge and skills. But unlike a typical graduate programme, a student in international business management will learn skills that are dynamic and useful in various environmental and economic conditions. Skills that will help students integrate with organisational and operational structures that differ significantly. Apart from mandatory skills any manager would require, such as presenting and reporting, students would also learn skills such as communication, leadership, strategic thinking, etc., from an international business point of view.

3. Global workforce management

Photo by Alex Kotliarskyi on Unsplash.

Effective management of the workforce can be complex in the best of times. However, this difficulty increases manifolds when you consider a multinational organisation. Not only will managers have to consider local sensibilities when formulating a policy, but the decisions made when hiring or layoffs can significantly impact the local economy. Students will learn to examine the changing nature of organisations in a global context and understand whether an organisation’s policies and practices can genuinely be global or if national and cultural sensibilities must be considered.

4. Business practices

Students will learn the theory of cross-cultural interaction and different cultural identities and see how these influence management practice in ethics, leadership, decision-making, communication and negotiation. Students learn to conceptualise ethics, responsibility and sustainability in diverse global settings and develop an insight into the expanding role of sustainable development, corporate governance, responsible business practice and the ethical dimensions of organisational policies and procedures. 

5. Become more employable

Photo by Cytonn Photography on Unsplash.

The most crucial point for any student. Most businesses today are multinational, looking to go multinational or have partnerships with vendors in other countries. The skills students learn from a programme in international management will make them very employable. And even if organisations are not looking to go global or have only local business partnerships, the skills learnt from a programme like this will be just as valuable as those with a more traditional business degree.

Hopefully, these points will help you better understand the value of a degree in international/global management. If you have already completed a degree in international/global business management, please share your experience and the benefits you got from the degree. I am sure our readers would appreciate and benefit from it.

If you have been thinking about doing either a BA, MBA, MSc or LLM degree with an international/global twist, look at our list of programmes and see if we have anything you are interested in doing. 

You can also chat LIVE on WhatsApp with one of our Education Advisors for more information on the programme that is right for you, the application process, and details on discounts we might be offering at this time.

#Dilo – A day in the life of an RKC student – Wilson K

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As a former Education advisor, if I had to pick one of the most frequently asked questions by prospective students, it would be “How many hours do I need to study?”  

The vast majority (if not all) of our students are working and leading hectic professional lives. Some are motivated and have already decided to undertake a master’s, while others contemplate the unknowns of an online programme. In my experience, two things affect their decision the most.   

First – finances, and second, being able to strike the perfect work, study, and life balance. While I cannot completely help you with the finances (partially yes – check out the discount offers currently being offered on our online MBA, MSc, and LL.M programmes), I thought what I could do to help was to bring some facts to light about the other unknowns – what does a typical day in the life of an online master’s student look like?  

I asked a few of our students from different walks of life, occupations, and personal situations to answer a few questions on their study tactics and strategies, plans and reality, and so on.  So, through our ‘#DILO ‘a typical day in the life of a master’s student’ blog series every month, we bring to you one of our actual students or alumni sharing the insights.   

Today, we’re looking at Wilson’s typical study days. Wilson, the Managing Director of an advertising company in Kenya for the past 14 years, offered us these answers:

An Introduction  

Vidhi Kapoor (VK): Which programme did you choose and why?  

Wilson K (WK): I chose an MBA programme in International Business in order to boost my wealth of knowledge for conducting business through a wider lens that could help me steer the company and any new initiatives to greater heights from an informed foundation.

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Stayed focused and consistent

The Study Plan   

VK : How did you plan to study each module, and what was the reality? How many hours did/do you have to put in each day/or in a week?  

WK:  While the modules are structured with the ease of flexibility, the fundamental aspect is that each revolves around the individual’s ability to keep the pace as a member of a group class. And this means serious balancing between work expectations and deadlines, not to mention that you must also research and study to reflect the mind of a master’s student. My strategy was to allocate the first 2 hours on Monday, 2 hours Wednesday morning and at least 3 hours on Friday to catch up with the reading and contribute to class work and assignments as well. 

VK: What part of the day did/do you find most suitable to study? (e.g. early mornings, lunch break, evenings, weekends?)  

WK: I found morning hours very apt especially if the assigned time implied adjusting your wake-up schedule and morning routine. The mind is less polluted and cluttered with the day’s requirement and one is able not only to concentrate but also bring out the best in terms of thinking and concentration.

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Wilson allocated time based upon the requirements of each assignment

VK: How much time did you devote for each assignment?  

WK: Time devotion for each assignment was dictated by the requirements and details of the questions. In most cases, each weekly assignment needed about 4 hours, but the examinations required at least 4 days considering that one is given the benefit of knowing each paper in advance.

Travelling and Communication  

VK: Did you travel for work? How did travelling impact your ability to study?  

DA:  My work involves a lot of travel around the country but whenever such need arose, I had to plan for a trade-off in terms of hours where either delegation or relegation of priorities had to be effected. Missed classwork and deadlines sounded like the best recipe for failing a module and facing the menacing consequences that are well defined within the rules.

VK: How were you able to interact with peers and/or professors given the time differences?  

WK: With proper planning and calculated awareness of time differences, I really can’t say I had a problem interacting with peers. The University timetable was also well aligned to this as both the classwork and assignment deadlines did not create overly demanding adjustments.

A typical day as a master’s student  

VK: What does a typical day as an Online Masters’ student look like for you?  

WK: A typical day comes with lots of anxiety on not only how well you are faring in class but your preparedness towards the assessments. You also have to keep check of your performance within the organisation especially if you are a leader so that you do not jeopardize the organization you guide.

Any advice?  

VK: Any advice you have for students to better plan their studies.  

WK: This programme demands individual discipline especially on time management. The risk of just skimming through the course is real and the most important thing to keep at the back of the head is that this should not just be for passing the exams and getting an award but to ensure that you obtain the incredible insights that propels your line of thought, intelligence, and faculties higher than where you are today.

   

A person working on a computer Description automatically generated with low confidence

Wilson says the programme aims forthe incredible insights that propels your line of thought, intelligence, and faculties higher than where you are today.

Alright friends, this was a sneak peek of a typical day in Wilson’s life as a master’s student. I hope you find it insightful and informative and that it gives you an idea of what to expect when you enrol for our master’s programmes. Watch this space as we have many more interesting insights coming up! 

The impact of multinational companies on you! 4 positives and 4 negatives.

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Multinational companies have made the world a small place. Global trade! Photo by NASA on Unsplash.

I had a pretty comfortable standard of living growing up. I never lacked for anything, but as they say, the grass is always greener on the other side – I felt the choice of products and services available to me was very limited compared to the options available in other countries.

Now that I am all grown-up, I know that my choices as a kid were limited because my country had a closed economy; we did not have foreign direct investment (or at least very limited) in the county until the early ’90s. We had loads of mom-and-pop stores that you could walk into and bargain for what you wanted.

Investing in a country. Photo by Alexander Mils on Unsplash.

But once the country opened up, we went from having limited choices to having endless (at least that is what it felt like) choices, from being a vastly farming centric workforce to being a corporate-driven workforce. And while I believe that the positive aspects of an open economy outweigh the negatives, it is just my opinion, and it cannot be denied that there are both positive and negative aspects.

Multinational companies (MNC) that set up shop in my country took a risk on the unknown, deciding to invest in a country with a limited FDI track record. They were not only entering a new market with no idea how customers would receive their product/service, but they would also have to work closely with a government they were unfamiliar with.

The advantage that MNC’s have today is that there are very few unknowns. Technology and the internet have made the world smaller, and these days companies, more often than not, know what they are getting into and can work out a very profitable deal with countries/governments. On the flip side, even governments know a lot about the companies and what they can bring to the table that can benefit the country’s citizens (voting population).

So, what are some of the benefits MNC’s bring?

Positives of MNC’s. Photo by Mika Baumeister on Unsplash.
  • The cost-benefit for the MNC’s – This is probably the most significant factor around which business decisions are made. The cost savings is where multinational companies benefit the most, from the cost of labour to raw materials. A company might choose to set up a factory in the same country from where raw materials are sourced. In all likelihood, the cost of labour in these countries will be much lower and add to this, if the companies can finagle a tax concession from the government, then the profit margins they would get from the sale of the products can be exponentially increased. 
  • Benefits to the consumer – The obvious benefit of reducing the manufacturing costs should be a reduction of the selling cost while at the same time maintaining a high standard of product quality. Not to be cynical here, I don’t think the cost reduction will ever happen, but at least the quality of the product will not be compromised to bring down the manufacturing costs. The other benefit is choice. Suppose a company can manufacture a product cheaply. In that case, they can reinvest the money in other endeavours such as expanding their product line, research and development, exploring new markets and market segments, etc. 
  • Employment benefits – MNC’s create new jobs in countries they expand to and create new higher-paying, higher-value jobs in countries they already operate out of and create auxiliary support businesses. For the most part, they bring in industry best practices and help increase the quality of life of their employees by providing them with higher salaries and training.
  • Benefits to the government – This point has roots in the earlier three points. MNC’s create employment for their citizenry and give them more spending power. They increase annual tax collections for the government. MNC’s can help in regulating and keeping the cost of products competitive. The more products and services in the market, the more choice the citizenry have and the more they will spend.   

But, at the same time, with MNC’s, everything is not peaches and cream. So, what are some of the negatives MNC’s bring?

  • Dominating the market – While MNC’s bring in big money, it is the same monetary power that it brings to bear to crush the competition and small local businesses. To pressure local suppliers to align with how much they are willing to pay for a product/service. MNC’s have the power to dictate the supply timelines and the penalties of failure to deliver while at the same time avoiding penalties if payments are not made on time.
  • Social influence – MNC’s are the bringers of change. They introduce the local population to new products and services and a new way of thinking. Some of these new ways may counter the traditions of the land and might topple generations of traditions. Now, some of this might be a good thing, and some of it might be bad, it is all about your point of view and only history can judge.
  • Influence on government – The more powerful MNC’s have the power to lobby for change in government policy to suit their requirements which may be detrimental to the local businesses or the population. Most of the time, the populace doesn’t even realise that things like these happen, and even if they do realise, everything can be spun to smell like a bed of roses when it is actually a pile of dung.
  • Dumping ground – All of us want the latest and best product in the market. It has become so bad that a more-than-a-year-old mobile phone is considered outdated, and more importantly, “so last season”. Where do all these products go? I remember one of the best-selling cars in my country for about a decade was a car that was outdated in most parts of the world about a decade before it was launched for us. Launching outdated products can compromise safety and can harm the local environment.

In my opinion, the days of the local businesses are generally over (there will always be local businesses, I am just saying “in general”). Because of the internet, everyone knows what is out there, and we all want it. We are moving towards one world, one race, and that is mainly because of global trade, which is powered by MNC’s.

If you want to learn to be a better manager on a global then check out one of our 100% online master’s degree programmes. Chat LIVE on WhatsApp with one of our Education Advisors today.

What is globalisation?

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I don’t know if you have noticed, but many of the online master’s degree programmes we at Robert Kennedy College offer either have the word Global or International in them. Why do you think that is? Is it because of “globalisation”?

Business globalisation. Photo by Jp Valery on Unsplash.

I know the word is self-explanatory, but we have to start somewhere, so let us begin with the meaning of globalisation. According to the BBC, Globalisation is the process by which the world is becoming increasingly interconnected due to massively increased trade and cultural exchange.

How has this come about?

The first thing that happened was transport became cheaper and faster. We invented the wheel, then the steam engine, then the combustion engine, and so on. People and goods were able to be moved around the world almost overnight and in large quantities.

Then the communication boom. From snail mail to the telephone, it took a bit of time. Then came the era of mobile phones and the internet, and everything changed. The changes seen just in the last 25 years have been miraculous. The world has been brought closer together (Only in business. In every other way, the world is still pretty divided). Companies have become truly multinational and cross border trade – a mundane reality. At this rate, Gene Roddenberry’s vision in Star Trek of an Earth utopia could become a reality (fingers crossed here).

Advances in communication technology changed how we do business. Photo by Stellan Johansson on Unsplash.

Now, if you combine the two (travel and communication), what you get is globalisation.

To understand this better, let us take Apple Inc. as an example – Designed in California, Made in China. The iPhone may be designed in California, but everything that goes into the iPhone is global. The phone itself is manufactured in China with semiconductors sourced from Italy and Germany, memory chips and processors from South Korea, wi-fi and Bluetooth from Japan, and minerals from Mongolia and the Democratic Republic of Congo.  

While this looks impressive, what is really impressive is the Supply Chain Management that must go on behind the scenes. Apple sells upwards of about two hundred million iPhones a year globally, and they bring out new models of the phone every year. This means the material has to be sourced, the components manufactured, the phone assembled/manufactured and then shipped to ensure they reach the customers’ hands-on time. All this has to be carried out like clockworks across multiple countries. Let’s face it, none of us has any patients anymore, and if there is a delay, I am going to Samsung (Oops, I already have, but for a different reason).

How does Apple Inc. sell 200 million iPhones a year? Supply Chain Management! Photo by Kyle Ryan on Unsplash.

For all this to happen, the communication behind the scene has to be real-time, continuous and spot-on. The shipment planning has to be on-time and seamless. Because remember, you are operating across countries here.

There are a lot of positives to globalisation, such as creating jobs and new income in poorer communities, thereby giving them food and a roof over their heads, making a cheaper yet high-quality product for the customer, and keeping manufacturing costs low, thereby enabling the company to invest the money into some other aspect of the business (hopefully no into the pockets of the executives), just to name a few.

While it is hoped that working with companies from developed nations, the local business partner will be able to adapt the best business practices from the developed countries and raise the standard of living of its employees, the reality is companies still need to secure future contracts with the “big fish”, and the way to do that is by giving a lowball quote on future services. They get this done by cutting corners, cutting wages, and cutting the workforce by increasing the workload.

While this is more likely with companies operating in blue colure job segments, it comes down to the laws of the nation they are operating within at the end of the day. If the countries have strong labour laws and enforce them, then this is less likely to happen.

Photo by Tingey Injury Law Firm on Unsplash.

Then there is the question of what happens to the people whose jobs just got outsourced? Are they being retrained and upskilled, or are they just let go? Do companies pass on the cost-benefit of outsourcing to the end-user?

So, while outsourcing and globalisation can be great to the bottom-line of any organisation, companies must ensure ethical business practices of their partners because no one else will. Companies must also provide training and upskilling of their employees before outsourcing because a strong and happy workforce is the backbone of any organisation.

If you are ready to be an efficient and knowledgeable global/international business manager, consider joining one of our 100% online master’s degree programmes. Chat LIVE on WhatsApp with one of our Education Advisors today.

Should you consider a career in International Business? Here are 3 reasons why you should!

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I dislike starting a blog using a cliché, let alone one the is well worn. The world today is really small. One could even call it a “global village”. There are several reasons for this: cheap, quick travel across the world to clear, instantaneous, and secure audio and video communication and conferencing. Decisions can be made from across the world, data and finances can be transferred securely and instantaneously to execute decisions, and human resources, if required, can be flown in overnight.

Small world/global village. Photo credit: Bill Oxford on Unsplash

As the result of all this globalisation and economic barriers disappearing, businesses, even small businesses, have become multinational.

Having said that, there are still several barriers businesses must overcome to be genuinely international or multinational such as language, culture, local labour laws, politics, economy, and geographical distances, to just name a few. A business will have to overcome at least as many difficulties as there are countries to truly operate internationally.

There are several ways companies overcome these challenges, from recruiting locally to creating or recruiting specialists in international business who are familiar with the local laws, culture, etc., and who can learn and adapt quickly. These specialists will not only be familiar with the working of the company but will also be familiar with the expectations of the company from their local subsidiaries, partners, and vendors. 

These international business specialists will have to work closely with their local agents communicating the company’s policy and expectations. They will, in all probability, have to travel to the new country of operation as a representative of the company and spend a substantial period in-country to ensure the processes are set up correctly. 

More prominent companies will also set up an international office with the primary purpose to troubleshoot any issues that might arise from operations in any country. 

Here are 3 reasons why YOU should consider a career in International Business

Salary and Demand

Photo by Alexander Mils on Unsplash

As per the National Center for Education Statistics (NCES), in the U.S., only about two thousand students graduate with a master’s degree in International Business every year. To give you an estimate of the earning potential of a career in international business, according to data published by PayScale Inc., in the United States, the approximate early career pay for someone with a bachelor’s degree in International Business is about USD 52’000. I can infer from this that there is an opportunity to get in on the ground floor for a career in international business as the number of graduates is still very low. The salary offered is competitive, and depending on the company and job profile, there is the potential to earn more from the get-go itself. 

Job Satisfaction 

Find a job you enjoy doing, and you will never have to work a day in your life.

Mark Twain

Job satisfaction is very subjective. You might hate to do the work that I love, and vice-versa. So, before you take up a job in international business, ask around, find out what the job entails, how much travel is involved, what kind of job security is being offered? According to a survey by PayScale Inc., about 40% say that a career in international business has “meaning”, here “meaning” means they feel their work makes the world a better place. Whereas about 70% say, they are satisfied with their work. So, the potential of having a satisfying career is relatively high, and maybe even a meaningful career. 

Future-proof 

International business is a people-oriented job. It is dependent on people-to-people interactions, decisions, and analysis made by managers, understanding the cultural nuances of (a) people. As a result, international business cannot be automated. Even if the process you are involved in does get automated, something new will get created just above your current profile in the value chain. So, a career in business in general and in international business in particular will, in general, be future-proof, and unless something goes drastically wrong at your company, you need not worry about losing your job.

If you are ready for great career opportunities, professional growth, traveling and exploring new cultures, then a career in international business might be for you. Robert Kennedy College offers several programmes in International Business. Chat LIVE on WhatsApp with one of our Education Advisors for more information.