Columbia Nobel Laureate Joseph Stiglitz Explains Roots of Euro Zone Crisis
Columbia Business School recently published an article that details the fraught history of the Euro since its inception at the 1992 Maastricht Treaty as both a symbol of continental unity and a common currency to “allow investment capital to flow seamlessly over borders.”
Brexit And The International MBA
The shockwave of the U.K.’s vote to leave the European Union in late June, 2016, caused an immeasurable amount of ripple effects—many of which are, still, difficult to quantify. Stocks immediately descended upon hearing the news of UK voters opting to the leave the EU by a close margin of 52 percent to 48 percent. Just four months after the move, the value of the English pound fell to its lowest rate in 31 years, according to the Wall Street Journal.
The long-term effect of the vote will take years—potentially decades—to determine. And one of the many areas potentially feeling those drastic effects is the MBA market in London.
As the financial epicenter of the world, London’s prestigious business schools have potentially a lot to lose when it comes to the value of the MBA, not mention the overall cost of earning one. Economic analysts have already speculated that the price of earning an MBA will diminish because of the value of the pound, but small purchases (like the brand new Apple MacBook Pro) will be more expensive in the U.K. than other markets because of the Brexit effect. So concerns, to put it lightly, are all over the map.
According to reports, new U.K. prime minister Theresa May has already gone on record saying that the number of international students joining the UK will be reduced in light of the vote, which was significantly driven by immigration concerns.
“As Home Secretary,” writes Bloomberg reporter Lance Lambert, “she implemented visa changes that made it harder for students from abroad to stay in the country after graduation. A crackdown on immigration was at the heart of the ‘Leave’ movement calling for Britain’s exit [from the EU].”
A crackdown in such a manner could drive a significant portion of potential students to competitive U.S. business schools, making the all-important talent pool more shallow in the U.K.
This isn’t the first attempt from May to curtail international students in recent years. As Home Office Secretary, May imposed tighter restrictions on student visas, which went into effect in 2015. The Chartered Association of Business Schools notes, “Non-EU first-year students studying business and administration in the country last year dropped 8.6 percent to 60,190, the lowest level since 2009-10.”
Of the £3.25 billion business students enter into the U.K. economy, £2.4 billion comes from international students—roughly 73 percent of the total amount. And with the potential £51 billion loss in revenue from British banks, the prestige of joining the finance industry in England may begin to deflate.
Not all news is dour, however. Considering the long-term effects haven’t yet played out, there remains some steady optimism that the negative effects won’t be as disastrous as some speculated.
Andrew Likierman, dean of London Business School, spoke with Bloomberg, saying, “In all of the dealings I’ve had with politicians … our students are precisely who they want to attract to the U.K.” He hopes the moves won’t eliminate top-tier talent from entering the country, rather, weed out the potentially weaker applicants.
“This isn’t the first time people have gotten anxious about globalization. This is just the latest of that manifestation,” Likierman says. “What we’re offering students from all over the world is to get a very global view of business. And the demand for that isn’t going away.”
With preparation for the full move still in its early stages (the U.K. doesn’t officially leave the EU until March 2017), how it will play out is exceptionally uncertain. John McDonnell, Shadow Chancellor of the Exchequer, has gone on record saying that May and her cabinet are still in a “make it up as they go along” type of strategy, which probably doesn’t espouse confidence. The long-term success of the move may be predicated on how the country handles working with international markets, which also affects the value of its academic institutions and the aforementioned MBA programs.
If anything is certain, it is that MBA students will have a large opportunity to learn about the changes government initiatives have on businesses, both domestic and international. It’s just a matter of whether or not students will be in London to learn about it.
Chicago Booth Celebrates Two Decades in Europe
In the last 20 years, Chicago Booth’s presence in Europe has seen its share of change in an ever changing continental economy. Looking to the future, nearly 500 guests, including faculty, staff, students, corporate employers, government representatives and nearly 300 alumni gathered to celebrate the business school’s 20 years of influence in Europe and ponder what the next two decades will hold. The four-day event included panel discussions, “A European Identity for the 21st Century,” keynote speakers, and presentations from faculty, alumni reunion class dinners, and networking events.
London Business School Study Highlights Strength of British Business
Business leaders overwhelmingly believe that Britain has been great for business in the last 50 years.
In a poll of more than 300 senior executives conducted by London Business School, 89% said that Britain has been great for business. More than half (57%) think Britain has become more innovative over the last five decades.
In the last 50 years Britain has seen boom and bust. And, despite 51% of business leaders believing uncontrolled risk-taking was the main cause of the financial crisis, we can still stomach risk. When asked about their personal attitude to risk, an overwhelming majority of business leaders (83%) still agree that measured risk-taking is an important part of business.
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Kellogg Prof. Explains Best Ways to Deal with Problematic Team Member
This article was originally sourced from Kellogg Professor Leigh Thompson’s article “What to do with your problem team member” in Kellogg’s news & events section.
Team’s are something we deal with everyday whether in an academic or professional environment. Professor Leigh Thompson from the Kellogg School of Business offered some advice on the school’s website on how to deal with any problematic team member in any facet of life. Continue reading…
