Ole Rollag gave up a cushy finance job in Chicago-not to mention baseball, deep-dish pizza, and 20-ounce cups of coffee-to pursue his MBA at France's Haute Ecole de Commerce (HEC), just outside of Paris. Rollag is very clear about why he chose to get his degree overseas, regardless of the sacrifice: "I wanted to learn skills that I didn't feel I could get in the U.S., such as negotiating on European terms, learning about European trade and labor issues, and [understanding] how the French and other Europeans solve business problems as opposed to the way we do in the U.S.," he says. "When you go abroad, it will change the way you see things for the rest of your life."
International and diverse mean very different things to stateside business schools and their foreign counterparts. According to Josh Kobb, development manager at HEC, "In the U.S., internationalization is about integration. The focus is on how the U.S. does business with foreign countries. In Europe, the focus is on leveraging the value of diversity. Schools outside the States concentrate on how business is conducted around the world." For this reason, Kobb explains, a foreign MBA provides training you can't get in the U.S.
So when is it right to do the entire MBA overseas? Where are the best programs, and what do you need to know? It all depends on what your goals are. Here are the questions you need to ask yourself to determine whether you should go abroad for your business degree, and what to do once you've made the decision to do it.
Where do I want to work?
Going to school overseas is a good way to gain the international experience necessary to land a plum job in Geneva or Hong Kong. "Studying abroad is an attractive option for students considering future employment with multinational firms," says Alan Follmar, a recent European B-school grad from Arizona. "Except for students with extensive international exposure and foreign language skills, it should be considered a requirement for those wishing to establish an overseas career." Before attending business school, Follmar worked at GE, testing aircraft engines; he now works in structured finance at Barclays Capital in Paris. His MBA abroad was "an essential element in allowing [him] to change sector, function, and country," he says.
Washington, D.C., native Andrew Howell attended INSEAD in Fontainebleau, France for similar reasons. "I've always been interested in Europe, and I saw INSEAD as a great opportunity to relaunch my career in a more international context," he says. "Multinationals and global corporations recognize that they need to reach across borders in their recruiting efforts. The type of international educational focus at INSEAD is a real asset to these companies."
Equally distinctive is the makeup of the student body in overseas B-schools. Even in a diverse U.S. MBA program, only about 30 to 40 percent of the students are from outside the country. At Dartmouth's Tuck School of Business, for instance, international students make up 33 percent of the class of 2002. Even at the exceptionally diverse Kellogg School at Northwestern, slightly fewer than half of this year's entering class hail from outside the 50 states. Compare that to the breakdown at the London Business School, where 80 percent of the students come from outside the U.K., or to HEC, where more than 70 percent of the students are not French.
In his first group project at HEC, Rollag worked with students from Costa Rica, Romania, Italy, and France. "I never imagined how rich the diversity would be, and how it contributes to the program," he says. "People from different countries solve problems differently, and so we had a lot of cultural issues to deal with as well as personal issues. ... Not only have I experienced a lot inside the classroom, but I have also learned a lot outside."
How can I tell if a school is reputable?
As business becomes more and more global, so does business education. Graduate education in business administration was once a primarily American and Western European phenomenon, but programs are now springing up all over the world. And as more top U.S. schools open international campuses and partner with international firms, foreign business schools are responding to the competition by improving the quality and breadth of their programs. Today you can get an MBA just about anywhere. But the sheer number of choices makes it difficult to find programs that offer the right combination of name recognition, networking opportunities, and quality education.
One measure of quality is accreditation. The AACSB International (Association to Advance Collegiate Schools of Business) is recognized worldwide as the premier seal of excellence in business education and accredits more than 400 programs worldwide. Of these, 391 are in North America, seven are in Europe, three are in Asia, one is in the Middle East, one is in Central America, and two are in South America.
Other notable accreditation bodies include AMBA (Association of MBAs) and EQUIS (European Foundation for Management Development). Visit the Web sites of these organizations to see whether a particular school is accredited or to search for accredited programs in a geographic region.
Rankings lists, while hardly the last word on the relative quality of programs, can be great jumping-off points as you begin to identify potential schools. You can compare some major lists of rankings at Bschool.com.
How do I choose a school?
Educate yourself. Visit the Web sites of your prospective schools, and read them thoroughly. Look at job placement data and the salary specs on recent graduates. Look at program structure, and focus on schools where the curriculum and atmosphere mesh with your learning style. Consider the length of the program. Some, such as Switzerland's International Institute for Management Development (IMD), Oxford's Saïd Business School, and INSEAD, offer a fast-paced one-year degree, but many run for the traditional two years or 18 months.
Look to schools with expertise in your areas of interest. If your focus is on finance or consulting, don't overlook the London Business School. The Netherlands’ Rotterdam School of Management has some hot courses in e-management, while IMD is beefing up its offerings in entrepreneurship. Spain's Instituto de Estudios Superiores de la Empresa (IESE) is strong in business ethics.
Choose a school that meets your language needs. If you are intent on polishing your language skills, a bilingual program may have more appeal than one where all the classes are taught in English. HEC and Barcelona's ESADE emphasize French and Spanish, respectively, in addition to English. And even if you are fluent in a foreign language, business-speak includes terms and nuances that you might not be familiar with.
Make sure, too, to choose a school where recruiters from companies that interest you maintain a strong presence. A number of U.S. firms recruit at foreign campuses, but as Kobb points out, "they typically do so with an eye toward staffing their foreign offices."
It is important to attend a school that will allow you to acquire the skills and make the contacts you need to end up where you want to be after graduation. If your ambitions lie in developing Latin American economies, check out the Monterrey Institute of Technology in Mexico. If you want to experience first-hand the excitement and bustle of Asian culture and commerce, consider Hong Kong University of Science and Technology. Already fluent in Chinese, Matthew Brady chose INSEAD Singapore because he intends to work in Asia; but he will also spend some time at its campus in France. "The ability to have this dual experience is one of the greatest selling points of the school," he says.
Don't forget to consider the location from a personal standpoint. Are you a city slicker? Then maybe the London Business School is for you. Do you prefer mountains and lakes? IMD sits on Lake Leman, at the base of the Alps. Lovers of Italian culture should consider Bocconi, located amid the museums and historic architecture of Milan. Prospective MBAs with a penchant for colder climes ought to look at Rotterdam, while those who want to head Down Under should investigate the University of Melbourne and the Macquarie Graduate School of Management in Sydney.
How do I apply?
Applying to foreign business schools isn't so different from applying to those in the U.S. You can often download application forms from the schools' Web sites, or you can apply online. Expect to submit GMAT scores, letters of recommendation, essays, a resumé, and your transcript.
Additionally, be prepared to demonstrate knowledge of a foreign language. You'll need to know at least one language besides English to graduate, and some schools make working knowledge of a foreign language a condition of admission. One perk: You'll already know English, which foreign schools routinely require of all their students. Another advantage: No matter where you go, at least a portion of the curriculum will be taught in English.
How much will it cost?
In light of current exchange rates, attending school outside the U.S. can be expensive. But several European programs last one year, instead of the standard two. A year's tuition at France's INSEAD costs 35,500 euros (about $39,000) and basic living expenses run 15,000 to 18,000 euros. That's a total of over 50,000 euros—about $55,000—for one year of study. You'll spend around $61,000 for a year at IMD, and $45,000 to study at Oxford's Saïd Business School.
But these programs are among the priciest. Tuition and living expenses in Asia are much more reasonable: HKUST estimates a total cost of $32,500 for a single student living on campus, while the National University of Singapore estimates total expenses to be around $14,000 a year. By far the best bargains are to be found in Latin America, though: Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM) costs just over $4,000 a semester, while living expenses run around $300 per month; that's only $12,000 a year to live and study full-time. (For more information on comparable costs at U.S. schools, see our article on financial aid.)
The financial aid office at your prospective school will be able to tell you about scholarship opportunities, corporate sponsorships, and various loans. Check out stateside sources of funding as well. And be sure to fill out a Free Application for Federal Student Aid. You may be able to get a U.S. government loan or grant. Studying abroad may also qualify you for tax breaks. Download the IRS Tax Guide for U.S. Citizens and Resident Aliens Abroad here.
What language skills do I need?
In general, it's best to master the basics of at least one foreign language before tackling an MBA program overseas. Taylor Cottam had a great deal of international work experience before attending INSEAD, but regrets not being fluent in French. "I wish that I knew how much more difficult it is to do administrative things such as renewing a visa, applying for a bank account, and buying a car—more reasons to learn the language," he says.
Summer immersion programs are expensive but efficient ways to acquire the necessary skills. Such programs are heavily used by companies planning to send executives abroad, so you can count on getting appropriate, thorough preparation for your dollar. Two of the most respected programs in the U.S. are the Monterey Institute of International Studies in Monterey, California, and the Middlebury College Language Schools in Middlebury, Vermont. A 7- to 10-week course at Middlebury or Monterey in Arabic, French, German, Japanese, Mandarin, Russian, or Spanish will cost you anywhere from $4,000 to $8,400.
If travel is not an option, check out the course offerings at your local university or college. Also consider Berlitz, which offers online and in-person intensives in just about any language you can think of. And in a pinch there are always the ubiquitous and inexpensive software tutorials, tapes, and books, though these are less effective for cultivating conversational skills.
Do I need to file any paperwork?
The paperwork you need to file in order to study and live abroad varies from country to country. Visit the U.S. State Department Web site for information on passports, visas, health care, and immunizations. Cross-check the information you get there with the information supplied by the U.S. embassy where you'll be studying. Also check your school's Web site to see if it has any special requirements. Make sure you set your paperwork in motion early; it can take months to get everything squared away.
