More B-Schools Need to Focus on Emerging Markets
In response to the changes ushered in by the rise of emerging markets like India and China (such as the pervasiveness of outsourcing of manufacturing-and-services-type work to those countries) business schools have created new courses or revised existing ones, and are offering more opportunities for undergraduates and graduates alike to study abroad in emerging market nations.
But according to Frank DuBois, director of the Kogod Global Management Institute at American University's Kogod School of Business, more business schools need to dedicate more attention to emerging markets as the sheer number of said markets, their projected growth, and distinct natures demand it.
"The incorporation of emerging markets into the business school curricula has been to some extent ad hoc and professor dependent," DuBois commented. " While the majority of foreign direct investment and trade activity takes place between mature developed markets (hence the primary focus of b-schools on those markets), a recent JP Morgan study projects that consumer spending in emerging markets will be about 34% of the global total this year. This compares with 25% in 2005 and now exceeds that of the USA."
And it's not just consumers in emerging markets who will be spending money: earlier this year, the Institute of International Finance forecast that net private capital flows to emerging markets are likely to total around $720 billion this year and rise further to about $798 billion in 2011. That's compared to a total of $435 billion in 2009, but down from $667 billion in 2008 and from the record high of over $1 trillion in 2007.
"As world economies begin to regain their footing following the global economic downturn, companies are repositioning themselves for future growth," explained DuBois.
Many companies looking to invest in emerging markets will focus on those with fundamental strengths, such as the BRIC nations (Brazil, Russia, India, and China). But there are of course other emerging markets to consider - such as those in Africa, the Caribbean, and Southeast Asia. Each of them, whether one of the BRIC nations or otherwise, require different approaches and different market entry and development strategies.
"The institute was developed to help those interested in working with expansion into or investment in emerging markets navigate/ anticipate what those different approaches, market entries, and development strategies are or will be," DuBois said.
During the week long institute (held May 16 through May 22), participants (working professionals or graduate students) evaluated the future of emerging markets and considered the possibilities of investing in places like Haiti, where the present humanitarian mandate will eventually give way to the challenge of rebuilding the infrastructure and economy. Both public and private investments will be essential to restore and reinvent the country.
The institute offers a distinct advantage: its Washington, D.C. location. Students will make site visits to the IMF, World Bank, the Inter-American Development Bank, and will interact with representatives from the Office of the United States Department of Trade and the Embassy of India - experiences that can only be had in the nation's capital. Participants will leave the program with a better appreciation of the challenges and the unique, one-size-does-not-fit-all reality of emerging markets.
The collective global experience of the tenured faculty and executives-in-residence at American University's Kogod School of Business make it the ideal home for the institute. The school's instructors have extensive backgrounds in international business, finance, corporate governance, information systems, and supply chain management.
More information about the institute is available at: http://www.american.edu/kogod/programs/kgmi/index.cfm
More Information about International Business Education at AU's Kogod School of Business:
Preparing students to develop rewarding careers and become active global citizens who value integrity and respect diverse viewpoints and cultures is one of the core missions of American University's Kogod School of Business.
The school's International Business Department offers a variety of courses that provide a global perspective on the business disciplines of marketing, human resources management, finance, accounting, supply chain management, and trade.
An innovative new practicum course taught by executive-in-residence Bob Sicina, entitled Peace Through Commerce, offers students the opportunity to refine their consulting skills while researching funding sources for humanitarian projects in conflict areas such as Afghanistan and Iraq.
International business faculty lead global learning trips to China, Russia, India, and other countries, where students can earn credit while meeting with global business executives and immersing themselves in the business climate.
In 2010 and 2009, students ranked the school's global management program among the top 15 in the nation for the "Student Opinion Honors for Business Schools" by Entrepreneur Magazine & The Princeton Review.
In March 2010, the school hosted the spring meeting of the Consortium for Undergraduate International Business Education (CUIBE).