European and American MBAs go head to head

The competition across the Atlantic for the highest standard in MBAs is hotting up

Lately, UK business schools have had remarkable success in attracting students that would normally have opted for an MBA in the US. The Dean of Henley Business School, Chris Bones, commented, “A consistently undervalued pound means the UK has been gaining international students who might otherwise have gone to Europe or the US. We represent better value for money.”

The average American MBA course takes two years to complete, but this does not mean that it is a better qualification than one obtained in the UK or the rest of Europe. The curriculum for the average one-year UK MBA is basically the same as that of a two-year American MBA. The daily workload might be higher and students who do not have a business background may find it more difficult than a two-year MBA programme.

Then, of course, there is the matter of cost. To obtain an MBA in the US will cost anything up to $80,000. In the UK the cost varies between $43,000 and $54,500, although the London Business School, with its two-year MBA, is much more expensive.

The reputation of a UK MBA is beyond question. All the top business schools in the country consistently receive high research ratings. In the UK, business schools are normally attached to major universities, but operate semi-autonomously.

Nearly every single one of the major UK business schools has experienced strong growth in the number of overseas students over the last few years, including Manchester Business School, Said Business School (Oxford), London Business School, Imperial Business School, Cambridge Judge Business School, Lancaster University Management School and Cass and Warwick in London.

Open University Business School, Strathclyde, Durham and Cranfield are now part of an elite group of international business schools with triple accreditation from Europe, the UK and the US. It can indeed be said that business education in the UK is more highly respected today than ever before.

There is a new long-term trend emerging. According to the Association of Business Schools more than 80 percent of all full-time MBA students in the UK are now from outside the country’s borders. Many of them come from Eastern Europe, China, Hong Kong and India.

Susan Rose, who is in charge of MBAs at Henley Business School, Reading University, says, “Students are looking for an internationally recognised brand name.” Henley’s MBA programme offers core modules in finance, business strategy and marketing.

The meteoric rise of economies such as India, China, Singapore and Hong Kong means that these countries have an almost insatiable demand for MBA graduates.

Top American business schools, such as Stanford, Harvard and Wharton, still attract many of the top students and most of them go on to senior positions at major US companies. US universities are, however, not as ‘internationalised’ as their UK and European counterparts. Many companies, particularly in Europe, therefore prefer students who obtain their MBA at a university in the UK or Europe, since they are more comfortable working in an international environment.

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The May – June 2013 Issue

Highest corporate tax
rates in Europe

European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...

Belgium

Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.

Belarus

In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.

France

A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.

Estonia

A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.

Italy

While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.

Norway

Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.

Turkey

Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes. 

Israel

Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.

Hong Kong

There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.

Netherlands

Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.

The credit crisis

8 February 2007
HSBC warns of subprime mortgage losses

2 April 2007
New Century goes bus

14 September 2007
Wholesale markets have dried up

17 March 2008
Rescue of Bear Stearns

7 September 2008
Rescue of Fannie Mae

15 September 2008
Lehman Brothers file for bankruptcy

3 October 2008
US congress approves $700bn bailout

14 February 2009
$787bn stimulus approved by congress

 

The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.

1973 oil crisis

October 1973
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;

1977
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve

 

The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks.  The embargo lasted five months, and the effects are still seen today.

German hyperinflation

1922-1923

Hyperinflation
1923 – 1924
Stabilisation

 

The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.

The Great Depression

1929-1933
The Great Crash
1934-1939
Recovery and Recession

 

After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.

1907 bankers’ panic

1907
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.

 

The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.