Given the turmoil on Wall Street and the dim job market in the U.S. right now, it’s not surprising that many international applicants have decided not to come to the U.S. to pursue an MBA this year. Even more interesting, however, is that apparently many Americans also also now considering earning their MBAs abroad.
An article in last week’s Wall Street Journal describes the trend of more and more Americans deciding to go abroad for their MBA programs. Not only do schools such as INSEAD and IMD provide Americans with an opportunity to broaden their worldview, but they also offer a nice sort of career diversification in that they tend to attract a more diverse array of corporate recruiters than do American business schools.
According to the article, at some top European schools, only about 20% of the graduating class lands in finance, compared with up to 60% at some U.S. schools. While this has traditionally been a weakness for European prorgams in attracting top applicants who want to eventually pursue high-paying jobs, in today’s climate it’s one reason why more American than ever have sought out these programs.
Another advantage that many European schools offer is that their programs are shorter than most American schools’ programs, which, among other things, means that they can be significantly less expensive. While we tend to discourage applicants from choosing based on costs alone, this often significant difference can be hard for someone to ignore when they’re still paying off old student loans and are about to leave their job to take on even more debt.
The European programs aren’t content to just let Americans beat a path to their doors — they’ve made a point of aggressively reaching out to U.S. students in order to capitalize on this trend. As a result of the macro trend and these recruiting efforts, schools such as Oxford’s Saïd Business School have interviewed 60% more American applicants this year than last year.
The pendulum is swinging towards the rest of the world right now… Will it one day swing back towards American MBA programs when the economy recovers? What do you think? Comment and tell us!