The higher education industry nowadays is a multibillion dollar business and even expected to grow in the future.
Higher education institutions of the Anglophone countries have been very successful in the past decades in progressing towards internationalization. As others for instance German institutions lag behind, it could be very interesting to take a look at the higher education industry of countries like the U.S. and Canada.
The purpose of this paper is to develop a framework which serves for a classification of different forms of internationalization in the higher education industry in the U.S. and Canada. Furthermore some important aspects and a checklist will be added to give the reader a solid overview of certain conditions for an internationalization strategy. It addresses people which are interested in the higher education industry, especially in the context of internationalization.
For this reason, it is designed for people, who are working in the higher education industry as well as students.
At the beginning there will be a short introduction into higher education of both countries as the definition of higher education differs from country to country.
Subsequently the meaning of the term internationalization will be described. Having clarified the meaning, rationales for internationalization are given both at the national and institutional level.
In the context of internationalization, the paper provides statistical data of the higher education industry of both countries, focusing on the effect of internationalization on the economy.
After this profound information, the paper enters the main part of the topic.
A framework is described, which serves to classify the different forms of internationalization in the US and Canada.
In addition the process of internationalization in case of the New York University and its new ways in Abu Dhabi are specified in form of a case study.
A list of aspects is provided to support managers in their approach to develop a successful internationalization strategy.
Finally the paper will be summarized and completed by a final conclusion.
Table of content
1. Introduction
2. Higher Education in North America
2.1 Introduction to the Higher Education in USA
2.2 Introduction to the Higher Education in Canada
3. Meaning of Internationalization in the higher education industry
4. Rationales for industrialization
5. Description of the Higher Education industry regarding internationalization
5.1 Effect on economy
5.2 Conclusion
6. Internationalization of higher education industry
6.1 Classification of different forms of internationalization
6.1.1 Internationalization “at home”
6.1.2 Internationalization “abroad”
6.2 Analysis of the Canadian higher education
6.3 Analysis of the U.S. higher education
6.4 Case study: New York University
6.4.1 NYU’s international approach
6.4.2 NYU’s new ways in Abu Dhabi
6.4.3 Conclusion
7. Aspects of a successful internationalization strategy
8. Final conclusion
9. Appendix
10. Bibliography
1. Introduction
The higher education industry nowadays is a multibillion dollar business and even expected to grow in the future.
Higher education institutions of the Anglophone countries have been very successful in the past decades in progressing towards internationalization. As others for instance German institutions lag behind, it could be very interesting to take a look at the higher education industry of countries like the U.S. and Canada.
The purpose of this paper is to develop a framework which serves for a classification of different forms of internationalization in the higher education industry in the U.S. and Canada. Furthermore some important aspects and a checklist will be added to give the reader a solid overview of certain conditions for an internationalization strategy. It addresses people which are interested in the higher education industry, especially in the context of internationalization.
For this reason, it is designed for people, who are working in the higher education industry as well as students.
At the beginning there will be a short introduction into higher education of both countries as the definition of higher education differs from country to country. Subsequently the meaning of the term internationalization will be described. Having clarified the meaning, rationales for internationalization are given both at the national and institutional level.
In the context of internationalization, the paper provides statistical data of the higher education industry of both countries, focusing on the effect of internationalization on the economy.
After this profound information, the paper enters the main part of the topic.
A framework is described, which serves to classify the different forms of internationalization in the US and Canada.
In addition the process of internationalization in case of the New York University and its new ways in Abu Dhabi are specified in form of a case study. A list of aspects is provided to support managers in their approach to develop a successful internationalization strategy.
Finally the paper will be summarized and completed by a final conclusion.
2. Higher education industry in North America
2.1 Introduction to the Higher Education in USA
The structure of the U.S. higher education consists of the British undergraduate college and German Research University. Furthermore it is deeply influenced by three American philosophical beliefs. At first, Jefferson’s ideals of limited government and freedom of expression, states, religious communities, and individuals establish and maintain a range of higher education institutions. Second, the belief in capitalism and in the rationality of markets, which leads to the following view by American Universities and College, that higher quality will be achieved by competition rather than federal planning. The final principle is the dedication to equal opportunities and social mobility. These believe transformed the 19th century elite intuitions into the 20th century primary gateway to the middle-class, with access for Women and minorities to higher education. (Forest, 2003)
The following section provides an overview of the extremely complex and divers U.S. higher education. According to the U.S. Department of Education there are 6,500 postsecondary institutions that take part in its student financial aid programs. About two third (4,200 institutes) are degree-granting universities and colleges; the other 2,300 institutions offer vocational certificates. Approximately 17,5 million full and part-time students are enrolled at these 6,500 institutions; 15 million are registered as undergraduate students, while the other 2,5 million are graduate and professional students. Beyond the 6,500 institutions that participate in the federal aid program there are further colleges and universities but they are not counted be the U.S. Department of Education. (U.S. Department of Education,2009)
The approximately 4,200 degree-granting schools are divided into Community College, Public colleges and universities, Private colleges and universities, and For-profit institutions. (U.S. Department of Education,2009)
Over 6,6 million undergraduate students are enrolled at one of the roughly 1,100 public 2-year institutes, usually referred to by Community College. These colleges grant associate degrees in academic and vocational fields, which prepare students for transfer to 4-year colleges and universities. Furthermore they serve the communities by offering a range of educational services. For instance, English language lessons for recent immigrants, leisure courses, and training for large companies. (U.S. Department of Education,2009)
The largest share of the undergraduate students (6,8 million) and graduate students (1,1 million) are enrolled at one of the around 630 Public colleges and universities. They slightly vary on their objectives, from regional comprehensive universities which focus on undergraduate teaching and graduate preparation in professional fields such as teaching and business to research universities that offer a comprehensive set of 4-year bachelor’s, graduate, and professional degree programs. (U.S. Department of Education,2009)
At Private not-for-profit colleges and universities are almost 3,5 million students enrolled; the majority (68%) are undergraduate students. These intuitions are distinguishable into research universities, 4-year liberal arts colleges that concentrate on undergraduate teaching, a negligible number of 2-year institutions, faith-based institutions, women’s universities and colleges, historically African-American institutions, and schools that particular focus on a single field like nursing or performing art. (U.S. Department of Education,2009)
The approximately 2,400 For-profit institutions mostly grant certificates for vocational programs rather than degrees. About 900,000 attend the about 820 institutions which may lead to a bachelor’s and/or graduate degree. (U.S. Department of Education,2009)
Governance
Based on the U.S. Constitution the federal Government has no direct influence on higher education. They take power by funding scientific research - an extremely important revenue source - and financial aid for students. The governance is left to each of the 50 states; the control and governing process differentiate from one to another. For instance the constitution of the State of California grants the University of California independence as separate branches of the state administration. While in other states a board chosen by the governor or legislature governance all public institutions of higher education. In others, an appointed board takes only a role as an advisor. To prevent a too intrusive legislation some states have installed a state agency. (Forest, 2003)
Quality assurance is maintained by accrediting organizations. State government imposes their own accountability requirements but leave the assessment of academic quality to universities and colleges through taking part in the accrediting process. Accrediting organization set minimum values in various fields that institutions must meet; such as the curricula, faculty qualification, student learning outcomes, co-curricular student services, and financial health. Nevertheless they don’t mandate how to meet the values. Usually the review process takes place on 3-5 year basis. (Forest, 2003)
Finance
American colleges and universities are financed in a variety of ways. Certainly tuition and fee payment from students; and appropriations, contracts, grants from federal, state, and local governments play a main role in funding. Further key sources are private gifts; endowment and other investment earnings; and sales from auxiliary enterprises and services. (Forest, 2003)
The importance of the different sources various from the type of intuitions. For instance if you compare the public 4-year with the 4-year private (non-profit) institutions, you will notice that the public once earn 16% from tuition and fees while the private gain over 29%. On the other hand, the grants and contracts from different government sources to private institutions make only about 11% of their founding, while in contrast almost 20% at public institutions comes from the government National (National Center for Education Statistics, 2007)
2.2 Introduction to the Higher Education in Canada
Describing Canadian higher education is an extremely difficult task. An enormous number of its institutions are located within 200 kilometers of the southern border with the United States. Frequently a number of these universities are ranked among the top school in the world. In addition Canada has one of the highest participations rate in higher education worldwide; 1,65 million of the 32 million citizens are enrolled at postsecondary program. Canadian policy approach to higher education is unique, reflecting several of the complex social and economic factors that distinguish the country form other G8 industrial nations.
(Forest, 2003)
On factor certainly is that Canada has two official languages, English and French. Even thought the federal government provides his services in both languages, there are differences among the different provinces in language utilization at a postsecondary level and access to higher education by language. (Forest, 2003)
The aspect of the languages has his historical origin from the French and British colonial times. Since the Canadian constitution gives the authority of regulating and legislating higher education to the provinces, this will be factor in future as well. Beside the language factor the decentralization has led to further substantive differences between the provinces and their postsecondary policy and institutional structure.
In the past, Canadian institutions were distinguished into two groups: universities and non-degree postsecondary institutions (community colleges). Du to the diversity and the lack of ability to capture the unconventional institutions, today’s Canadian higher education is distinguishable into 5 types: universities and degree-granting institutions; colleges and institutes; school boards that operate adult and postsecondary programs; government institutions; career colleges. (Forest, 2003)
The category of university and degree-granting institutions are exceeding the number 190. The public supported of these universities inhabit the majority of the 1,65 million enrolled students. 45 of these institutes offer primarily undergraduate programs, 15 are defined as comprehensive universities, and 15 are medical universities. Further proof for the cultural diversity and historical influence to the higher education is the fact that there are 3 universities that address the special need of the First Nations (aboriginal) and Métis population. The largest numbers of the category are institutions that are specialized in certain fields. Some are focused on religious and theological education; others offer art, music and other specific programs. Each and every one of this category are focused on degree-granting. (Forest, 2003)
The second largest category is the college and institutes. The primary objective of the over 300 institutes is the offering of certificates and diploma programs; which are three years or less. The majority of the college and institutes are public-supported and operate under direct provincial government regulation. More than 30 of these institutions have the ability to grant associate or applied degrees in fields of their core technical/ vocational mission. About 120 are considered comprehensive institutes and offer diploma in a range of postsecondary programs. While the majority (145) offers only a limited and specialized range of programs. Like in the category before there are a number of institutes that focus especially on the needs of Canada’s First Nation people. (Forest, 2003)
The largest category, with over 550 institutes, is the group of the career colleges. Usually they are private owned business that offer certificate and diploma programs in specialized professions or vocations. Only the small number of 27 institutes is operated by the provincial or federal government. They offer specialist training in areas that are in particular need by provinces and country; for instance air traffic control. (Forest, 2003)
The categories of government institutions and the school board that operates adult and postsecondary programs are not of any major interest. The mainly focus on adult learning, teaching of foreign language and fundamental employment skills. (Forest, 2003)
Governance
The 1867 singed Constitution Act gave the Canadian provinces exclusive authority over their education. The legislatures of the 10 provinces and 3 territories organized and implemented their own educational structures and institutions. Even thought there are similarities between the 13 educational systems but certainly there are some differences.
Usually, higher education is governed by one or more departments or ministries responsible for education. The Council of Ministers of Education offers a forum at a pan-Canadian level for education ministers. This forum discusses topic of common concern, searches ways to collaborate, share information, and organize international education activities and representation. (The Canadian Information Centre for International Credentials, 2009)
Finance
The majority of the funding towards public postsecondary institutions in Canada comes from provincial, territorial, federal governments. In 2006-2007 public budget contributed $ 32 billion towards postsecondary education.
In 2007-2008 the provincial government contributed 45% and the federal government only 9.3 % towards the over $36.7 billion in revenues of universities. The other $ 16.6 billion come from tuition and fees (21%), sales of goods and services (14.6%), investment income (2.7%), and other own-source revenues for instance donation (7.4%).
In 2005-2006, colleges and institutes had revenues of $7.6 billion, with 53.2 % derived from provincial and territorial governments, 2.1% from federal government, 24.3% from tuitions and fees, and 20.4% from contract revenues, interest payment, and other private sources.
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