Higher education institutions are also of great importance because of the research capacity that is generated from international students, but according to the House of Commons (2007) UK faces competition in this area from other higher education institutions in China and India. China and India are both emerging economies, and this demonstrated by figures from AEI (2004) which show thatChinacontributed approximately 32 000 students toUKhigher education institutions. If these numbers were to drop significantly, then it is likely that theUKwould lose its competitiveness.
This threat is not unique to the UK, asAustraliaand theUShave established campuses in Asia(House of Commons 2007). This acknowledges the fact that some of the students may not want to leave their home countries, due to the costs of relocation. It also reinforces the foreign higher education institutions as being synonymous with quality. Australia’s government has gone a step further and has introduced the possibility that students on their foreign campuses might be able to gain points to be used towards a visa entitlement, in a bid to alleviate its skills shortages (House of Commons 2007). These actions are also indicative of an underlying trend, which is that of internationalism and/or globalisation
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