The biggest culprit in declining overseas applications still seems to be the uncertain U.S. economy. These days, when a job in America isn't guaranteed, the escalating costs for attending a U.S B-school isn't as easily justified. BusinessWeek's top full-time MBA programs in America charge at least $65,000 in tuition alone, which rises to around $100,000 once students factor in other fees and costs.

In countries like Argentina, where the local currencies have lost value against the dollar, MBAs don't want to return home to pay off their hefty U.S. education debt while earning Argentine pesos. Studying closer to home is "a practical alternative when you're not sure what kinds of job opportunities you'll have if you go abroad," says Liz Reisberg, executive director of The MBA Tour, a company that hosts B-school recruiting events abroad.

RECRUITING BOOST.   However, not all U.S. B-schools cite a dip in international applications. At The Darden School at the University of Virginia, admissions chief Dawna Clarke says her school's guaranteed loan program for international students, which doesn't require a U.S. co-signer, has even helped her recruit. And despite the dropoff, schools say the percent of their full-time class that they enroll with nonresident MBAs will remain about the same -- about one-third.

However, B-schools say fewer international numbers might have a negative effect down the line. In the fall, many universities will be amplifying their recruiting efforts in Europe and Asia to help stem these losses. The MBA Tour's Reisberg says her tours outside of the U.S. are oversubscribed with schools. UCLA's B-school will travel to China and South American countries more in the fall to do "more intense international recruiting," says Linda Baldwin, director of MBA admissions, at UCLA. "It's not clear how much we'll have to do to get traction [among non-U.S. applicants]."

Pete Johnson, director of international admissions for the full-time MBA program at Haas, says he'll spend more time explaining that international viewpoints are respected in Haas classrooms. "In many countries, U.S. actions in Iraq have been very unpopular, and the information that has been in the media abroad about the issue has created the impression for some international students that the U.S. may not be a welcoming place to study, which is far from the truth," he says.

WEALTH OF OPTIONS.  Just about every B-school admissions director hopes the U.S. economy will improve, and that could bring about a positive change. Already, schools say more of their MBAs are finding jobs in 2004, vs. 2003, and career directors are cautiously optimistic that will continue into 2005. And from January to May, 2004, U.S. consulates have received more student-visa applications, vs. 2003. The exact increase wasn't revealed, but the number of student visas issued rose 5.6%, says Stuart Patt, a spokesman for the U.S. State Dept.'s Bureau of Consular Affairs.

Still, the wealth of options now available to international applicants continues to grow. When it comes to choosing an MBA program, U.S. schools will need to find more compelling reasons to convince these applicants to venture beyond their backyards.

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Schneider is a management-education reporter for BusinessWeek Online Edited by Suzanne Robitaille


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