4 Reasons Why Knowledge of the Economy is Crucial to your Success in the MBA GD/PI

Knowledge of your educational background is simply not enough. You are now choosing a career that involves making profits in a dynamic economy. Unless you know enough information about the economy you cannot create viable real life solutions for the organization. Here are 4 reasons for having a good knowledge of Economics

1.) Economic Prospects in your chosen field: Those who are not aware of the economy cannot be expected to be adept at handling rapid changes in laws, competition and economic opportunities. India is growing at a rapid phase in a semi state of urbanization and industrial growth. So many factors affect your chosen industry and not merely competitors. The Personal Interview panel is sure to ask your views on what are the economic prospects within the field that you choose to build a career on whether IT, Retail, or Banking and Finance.

2.) Case Studies in Personal Interview: when you understand the economy you are better equipped to spot viable opportunities. We all are told time and time again that Real life and book knowledge are world’s apart. Those who keep a close track of the economy are able to quickly spot when a small legislation passed by parliament would create better opportunities for a certain segment of business, or when currency movements dictate better hedging to protect export earnings. MBA’s are supposed to come up with solutions that work. If you are given a case study in the Personal Interview, knowledge of the same may help frame a better answer.

3.) Capability to Analyze Real life competition: The competitors are not merely your industry players. An unfavourable law could make a state less tax efficient, or a decision by China could move raw material prices through the roof. Being part of a global economy means that one has to keep an eye out for not merely players within the industry. The Personal Interview may be sure to ask you what threats present India in your chosen field, i.e. Chinese strength in BPO, IT etc

4.) Abstract Extempore: You may be given abstract topics to speak on. A capability to talk about economic situations in an extempore will definitely impress the panel. However unless you have a good understanding of Economic news you will not be in a position to make convincing viewpoints related to your Extempore

So knowledge of the economy and economics is clearly essential for preparing for the MBA Interview. You don’t have to fear unnecessarily even if you don’t have a background in Economics.

Priyanka is a MBA from IIM- Bangalore and works as a communication specialist. Her website http://www.mbainterview.in provides useful tips for MBA aspirants to succeed in the MBA Group Discussion and Personal Interview