Executive summary

Reputed as one of the most advanced countries in education, UK attracts thousands of students to further study every year. Quality standards for UK universities are among the best in the world. However, financial deficit is the biggest crisis faced by every university for the lack of funding. Therefore, tuition collected from overseas students becomes crucial economic resources for UK universities and institutions. So, both UK government and the universities and institutions are keen to develop overseas education and pay more emphasis on this big market. Many preferential policies followed to promote its overseas education.

According to the PESTE analysis, the crucial factors that decide international students study in the UK universities are: tuition fee, preferential policy from the government and funding. UK academics are increasingly concerned about what they perceive as inadequate government funding, not only because they feel that this damages their ability to provide good education for UK citizens, but also because they feel it will make it harder for them to attract overseas students. The alternation of government policy and the attitude that government adopted directly decide and affect overseas university industry. Tuition fees charged by UK university is higher than many other countries which have also taken the overseas study market.

To attract more international students, the government should adopt more and more open policy and flexible system. Aim for attract more first-rate students who can not offer the high tuition fee, the government could adopt different level tuition standard and accept it can be paid after graduate.

1.0 Introduction  

Reputed as one of the most advanced countries in education, UK attracts thousands of students to further study every year. However, after deduction of financial investment from UK government, financial deficit is the biggest crisis faced by every university. Therefore, tuition collected from overseas students becomes crucial economic resources for UK universities and institutions. So, both UK government and the universities and institutions are keen to develop overseas education and pay more emphasis on this big market. Many preferential policies followed to promote its overseas education.

2.0 PEST analysis &key issues

2.1 Political

To attract more overseas students, In June 1997, the British labour-government started relaxing working permission for non-EU student and canceled the regulations of applying work permission before taking part-time job. It was reported that this policy coming into operation attempt to attracting 50,000 international students for higher education before 2005. (www1)

UK government’s assistance and its attitude towards international students. UK government adopted a series of policies to benefit international students who pursue their studies in UK, which includes dependents visit, accompanying study, and health insurance. It is make easier for international students to live, study and work in the UK.

Instability of global political environment. Terrorism, Iraq War and turbulence of political environment make U.S, the most powerful competitor of UK in the overseas study market, lost many market shares after 911 events. In year 2002, total numbers of international students in U.K. first exceeded U.S. U.K. became the most favorable country to pursue overseas study. (www2)

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The major issue in further and higher education in the UK is funding. Most of universities in the UK are suffering the lack of funding today. From the UK's point of view, income from overseas students is more important than before. Fees from overseas students represent around 6% of the total income for English universities. When expenditure margins are tight, as they are now, a contribution of 6% from foreign revenue can make a big difference. (key note 2002 p53)

2.2 Economic

Tuition fee, especially postgraduate tuition charged by UK for international students is higher than many other countries ...

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