Student's corner

Dear Students,

LAST WEEK WE ASKED:

Do you think the economic scenario in western markets will impact international internships? Why?

BEST RESPONSE

With the downgrading of USA credit rating and flimsy EU market, the apparition of double dip recession is looming large. Under this grim scenario, companies will embark on cutting cost as happened during the 2008 recession, which will badly affect the current international internships scene in India. Also current economic scenario will affect the accounts receivable (AR) by companies thus their sales revenues and profits of will decline, leading to cost cutting on various front including offering international internships, hiring new employees, or freezing hiring entirely.

- Nilaya Mitash Shanker, Shri Ram Swaroop Memorial College Of Engineering And Management (SRMCEM), Lucknow

OTHER RESPONSES

The economic scenario in western markets at present is very critical as is obvious by the downgrade in US financial rating. Along with that is visible the huge number of job cuts in Bank of America as well as in UK. So there is no doubt that it will impact international internships. When companies are reducing their expenses by decreasing the employee base, how is it possible for them to arrange for international internships? Thus the prevailing economic scenario will automatically bring a downfall in international internships.

- Shivam Chhabra, Integral University, Lucknow.

These days western markets are at an all time low phase with the situation getting gradually out of hand. In such a scenario international internships are bound to be negatively affected. Fewer and fewer companies will be hiring in this tumultuous times. With many companies already on firing spree, the chances of new placements are dim. Fewer jobs will be created; moreover the existing employees will be under the constant pressure to deliver or fallout. So notion of new placements is out of question.

- Richa Malik, Guru Jambeshwar University, Hisar

International internships come with a tailor stitched structured order in which the candidates undergoing training are absorbed within the organisation after graduation. Since the companies due to the present downturn are facing problems in keeping their expenditure as minimum as possible, mostly all are decreasing their workforce. It is then viable for overseas voyages to get a blow in such a scenario. Moreover, the funding agencies, colleges and companies themselves helping students for financial grants to undergo such training are stepping back due to cost cutting, it will become more difficult for students to pursue such internships. 

- Nandish Agarwal, Galgotias College of Engineering and Technology, Greater Noida

The economic scenario in western market will impact the international internship. However the impact will not be much in extent since the benefit of internship is mutual, i.e. both the corporate as well as young aspirants. On one hand, the student gets practical exposure, and on the other the company will look and use the internship as a source of talent for placement. Hence, during a bad economic scenario, corporates may reduce internships to some extent but not shun away from it.

- Mohammed Ahmed Hussein, Annamalai University

International internships are less in numbers and this is always a strategic decision by the companies to offer jobs in terms of market research and consulting, among others. Moreover, the internships are only for two months. Organisations will get the best results from the interns as they will try to work harder to get a pre-placement offer. Thereby companies will also achieve their goals. So it is a win-win situation for both. Current western market scenario will not be a constraint as the organisations will come and recruit students.

- Suvadro Chakraborty, Amrita School of Business, Coimbatore

A weakening western economy will adversely affect the international internship opportunities as it leads to a rising unemployment rate. This compels the hiring firms to address the concerns of the policymakers and open up internship opportunities for local applicants, rather than opting for international candidates, thus affecting their prospects.

- Devjyoti Mandal, IIT Kharagpur

The question of international internships looks into economic as well as political circumstances in the western countries. Economically, companies find internship offerings to some countries as more viable. However, considering low business growth and struggle with job cuts, this may not happen. With the US reeling in post-war debt and EU paying high for bad decisions made during the sub-prime crisis, we have reasons to worry.  If the governments decide to make the corporate pay for their faux pas then students cannot save themselves from getting affected.

- Prashant Gupta , Department of Management Studies, IIT Delhi

Your responses should reach us at edu@businessstandard.com by Monday evening every week. Please ensure that your responses do not exceed 100 words. Avoid attachments and email your full name, institute's name, batch and complete mailing address. The student who gives the 'Best Response' will be awarded Rs 500.

THIS WEEK'S QUESTION: 

Is it a good move to give equal weightage to entrance test as well as board exams for admissions in IITs? Why?