Q&A talks international business and educational opportunities with Christopher Ball, associate professor of economics and holder of the István Széchenyi chair in international economics at Quinnipiac University.
Q: You recently traveled to Hungary with MBA students from Quinnipiac. What was the goal of the trip? Why Hungary?
A: The goal of the trip is to expose American MBA students to international business. This can only really be done by physically taking people to another country. Much of what needs to be learned is subtle, like rephrasing questions that are at first misunderstood, seeing how a different culture leads to a different mindset and how this might lead to different solutions to business problems. A secondary objective is related to why we go to Hungary. Quinnipiac University has a unique relationship with Hungary because I lived and worked there for many years and we have Connecticut American-Hungarian business people who’ve further helped expand our business relations in Hungary. As a result, all our company visits are privately arranged — that is, we don’t hire an agency or local university to set up our trip as is common practice when visiting other countries — and we generally arrange our company visits through the CEOs and directors of those companies. The students then get private lectures and meeting time with executives and CEOs who provide invaluable insights and advice to these young MBA students. Students who went to Hungary can take those lessons to China or anywhere else and are better able to more quickly adapt than someone without that experience.
Q: What are some of the challenges of doing business in Hungary?
A: The challenges of doing business in Hungary are largely political, regulation and taxes. Politically, everything in Hungary changes when the government changes. So, to succeed in business in Hungary, your company must develop good political connections and manage government party changes well. Regulations from safety and quality standards to labor restrictions on whom you can hire are generally more stringent in Europe (e.g., certain positions by law require people with specific degrees, etc.). But since Hungary is a member of the European Union, at least your company can be sure that the regulations it faces in Hungary are essentially the same as the ones in Germany or France, which means exporting to other European countries from Hungary is easy.
Q: What are some of the opportunities for Connecticut businesses to establish relationships in Hungary?
A: There are many opportunities for Connecticut businesses in Hungary. The population is well educated and the country is well connected with physical and digital infrastructure. Hungary has a long history of producing top quality mathematicians, computer scientists and physicists. As a result, companies looking for well trained and very bright talent in areas that build on these skills have done well in Hungary. Morgan Stanley is a good example. It moved its mathematical modeling department to Hungary and has continued to build its office there and now has several hundred employees in Budapest. Also because of the high education level and prominence of English speakers, many companies have done well moving service centers to Hungary. Because of its location in the center of Central Europe, Hungary is an excellent launch site for companies interested in both western and eastern European markets.
Q: You are obviously a proponent of developing international business skills. How do programs like these help an MBA student’s career chances?
A: Short MBA trips like mine to Hungary have become increasingly popular in MBA programs around the world. I think MBA programs realized that not providing these visits was harming their students’ career chances. Today’s business environment is a global one and educational institutions have to prepare their students for that. Participating in a trip like the one I organize is a plus on students’ resumes, especially if the student is lacking other international experience. Additionally, I’m told by students who have included it on their resumes that Hungary stands out and has often been an opening point for further questions and conversation with potential and eventual employers. Once they learn a little more about the quality of the trip, the level of the management that students meet with and so on, it’s been a very solid positive for our graduates. But in many ways your question is backward. Not offering these trips for students today hurts them. So, they’re becoming a must.
