China’s bullish economy grew almost 10 percent a year over the past two decades. By some measures, the birthplace of paper currency is now the world’s second-largest economy.
If China stays on pace, it will vault ahead of the United States to become the top economy by mid-century.
Linda Kao at the Great Wall in China.
“Even if you aren’t working directly with a Chinese company, you will be impacted by what is happening in China,” says Linda Kao (’78), Cox School of Business’ assistant dean of global operations. Recent U.S. Census Bureau statistics on foreign trade show that China is now this country’s second-largest trading partner and source of imports (Canada is number one). It is the third-largest export market, behind Canada and Mexico, respectively.
Recognizing that “the sleeping giant” had awakened with a burst of energy, Cox launched its first American Airlines M.B.A. Global Leadership Program to the emerging powerhouse in 2000. “We’ve all heard the clichés – the world is flat, the global marketplace – but they’re accurate,” Kao says. “Next-generation business leaders have to develop a global perspective.”
Kao, who was born in Taiwan, has directed global programs at SMU since 1999. A former chair of the Greater Dallas Asian-American Chamber of Commerce, she first dove into international waters as a consultant for big-stage events like soccer’s World Cup and the Olympics, even acting as production manager for the live telecasts of Miss Universe pageants. Through these experiences, Kao learned that there is no substitute for human contact in navigating the complexities of intercontinental transactions.
Under Cox’s Global Programs, groups of 20 to 30 M.B.A. students will choose one of four two-week trips in May 2009: two to China, as well as one to India and to Europe (London, Budapest and Madrid). “We target the most viable regions, whether it’s in an emerging or a mature market, because students can learn a lot about innovation and creativity from both,“ Kao says.
Cox’s immersion experiences cover a broad swath of the business map. Students get a firsthand look at everything from city-sized computer module factories in China to hospitals specializing in medical tourism in India. In each country, students learn to master the nuances that can cement or sabotage a business relationship.
“Meeting people from another culture and determining how to make a good first impression – from learning how to properly greet them to finding topics of mutual interest for conversation, like movies and sightseeing in their country – was an invaluable experience,“ says Alex Bagden, a finance M.B.A. student who visited China in the spring.
Sometimes the unscripted moments, like a candid conversation over dinner with ex-patriots, yield the most practical insights, says Wes Davis, who is pursuing an M.B.A. in marketing and went to India in the spring. “They offered a good sense of what it’s really like to live and work in India. I’m not sure I want to live there, but now I’ll keep that door open.”
Occasionally the first leg of the journey begins much closer to SMU. Executives of homegrown businesses – such as Mary Kay, Perot Systems, Blockbuster and 7-Eleven (now an indirect subsidiary of Seven & I Holdings Co. of Japan) – share insights before students visit their overseas operations. “It was fascinating to tour 7-Eleven stores in Hong Kong and see how they differ from U.S. stores,” Bagden says. “The stores are much smaller, but have more staff and fresh food.”
Cox students survey China’s Forbidden City.
Overseas professional development trips are de rigueur for leading M.B.A. programs. Cox is one of only a handful of schools, however, that requires full-time, first-year M.B.A. students to complete an intensive two-week exploration of foreign business capitals. And it was one of the first to send students to China.
Travel abroad also is a core component of Cox’s nationally ranked Executive M.B.A. (EMBA) program. In October, approximately 100 students traveled to Santiago, Chile, and in March, they will visit China. About 80 Professional M.B.A. (PMBA) students are expected to take advantage of seven optional trips to Mexico, South America, Europe and China next year.
This on-the-ground study, Kao says, gives SMU’s M.B.A. students the advantage of “learning to communicate with foreign colleagues using the common language of understanding and respect.“
– Patricia Ward
2 replies on “Examining The Business Dimensions Of A Flat World”
It truly is becoming a flat world with commerce leading the way. It is the perfect time to be in China and India.
Medical tourism and dental tourism is a growing phenomenon and some countries now have their own specialty: heart operation in India, liver transplant in Thailand, breast surgery in Morocco … and dental care in Hungary. Obviously, they are not the only countries to have developed this type of tourism, which brings large income to the economy of their countries.
In India, medical tourism provides opportunities and attracts 1 million tourists per year, contributing up to $ 5 billion to its economy, according to a study by Confederation of Indian Industry (CII).
The same phenomenon is also growing in China.