Last week, Turkey’s central bank surprised investors by raising a key interest rate to 10 percent from 4.5 percent. It was a bold move to rein in inflation and calm the markets. But Turkey’s prime minister, Recep Tayyip Erdogan, has been vocal in blaming the “interest-rate lobby” — a supposed conspiracy of foreign bankers, and some economists and journalists — for volatility in stock prices and a steep decline in the lira.
Turkey is far from the only country to blame foreigners for recent market turmoil. Venezuela’s president, Nicolás Maduro, recently complained of a “psychological war from abroad.” The governor of the Central Bank of Brazil, Alexandre Antônio Tombini, describes rising interest rates in rich countries as a “vacuum cleaner” that indiscriminately sucks capital out of emerging markets.
Our global economy calls for managers with a global business education. A solid foundation in management theory must be accompanied not only by practical applications of that knowledge, but also by a deep understanding of the cultures and economies in other regions, exposure to students, faculty and experts from around the world, and opportunities to learn first-hand about business issues in other countries.
MIT Sloan has been a pioneer in this area, recognizing the need early on to prepare MBA students for global careers. For nearly 30 years, our MBA student body has reflected this commitment with approximately 40% of students coming from outside the U.S. And as a global institution, we’ve been able to attract and retain top faculty from around the world. Students benefit not only from professors’ cutting-edge research on international business issues, but also from their diverse perspectives on business.