Connect with us

Misc

The Impact of International Students on the U.S. Economy

Published

on

The Economic Impact of International Students on the U.S. Economy

The Economic Impact of America’s International Students

For decades, the U.S. has been the top destination for students looking to study abroad.

It’s easy to see why. Not only does the country provide access to world-class economic hubs like Silicon Valley, but the U.S. is also home to 14 of the top 20 universities in the world, many of which are famed for their research and alumni networks.

Yet, there is cause for concern.

International enrollments in the U.S. have slowed, while other countries are attracting a larger share of the global talent pool. To help us understand what’s at stake if enrollments continue to decline, today’s infographic shows the impact of international students on the U.S. economy.

Driving American Innovation and Growth

International students and scholars are a vital economic asset, and America’s ability to attract them puts the country in an enviable position.

First, there are the direct economic benefits which result from tuition fees and living expenses. Throughout the 2018/2019 school year, these benefits totaled $41 billion, a comparable value to many other American exports:

ExportValue (2018)
Automobiles$158B
Commercial Aircraft$131B
Pharmaceuticals$51B
Education Exports$41B
Telecommunications Equipment$36B
Soybeans$17B

Source: NAFSA, Evans, WorldCity

Even after graduation, however, international students and scholars continue to make significant contributions to the U.S. economy.

For example, attracting the world’s brightest minds helps to grow the knowledge economy in the United States, and 40% of American Nobel Prizes won in chemistry, medicine, and physics since 2000 have been awarded to immigrants. Furthermore, students who return home often do so with a network of connections and an appreciation for American culture, thus promoting U.S. international leadership.

Finally, these individuals can also go on to become successful entrepreneurs and business leaders in the U.S. economy. The list is long, but here are two noteworthy examples:

  • Elon Musk, known for founding Paypal, Tesla, and SpaceX, was born in South Africa. He received two Bachelor’s degrees from the University of Pennsylvania before founding his first business.
  • Satya Nadella, CEO of Microsoft, was an international student from India. He received an M.S. from the University of Wisconsin and an MBA from the University of Chicago before helping Microsoft develop its cloud computing capabilities.

Cause for Concern

In recent years, however, the number of new international students enrolling at U.S. institutions has been on the decline:

School YearNew International Student Enrollments in the U.S.Percent Change 
2013/14270,128--
2014/15293,7668.8%
2015/16300,7432.4%
2016/17290,836-3.3%
2017/18271,738-6.6%
2018/19269,383-0.9%

Source: Institute of International Education

With so many opportunities and success stories, why have international enrollments slowed? A survey of 509 higher education institutions in the U.S. revealed the top reasons for declining international enrollments:

Cited Reason for Decline in Enrollment% of Institutions
(Fall 2016)
% of Institutions
(Fall 2017)
% of Institutions
(Fall 2018)
Visa Application Process (delays/denials)34%68%83%
Social and Political Environment15%57%60%
Enroll in Another Country’s Institutions19%54%59%
Cost of Tuition51%55%57%
Feeling Unwelcome-49%50%
Securing a Job41%44%
Physical Safety12%33%44%

Source: NAFSA

Critically, the two most common reasons for declining enrollment—visa applications and the social and political environment—suggest that the quality of an American education is not the issue. Rather, it would appear that students are being discouraged from coming to the United States.

When we discourage or turn away international students, we lose much more than the students themselves… We lose their inventions and innovation, their collaborative input and their contributions to our communities.

– Dr. Martha E. Pollack, President, Cornell University

At the same time, other countries are taking proactive measures to attract global talent.

Australia

Australia allows its international students to work for up to 18 months after graduation. This limit can increase to 4 years for graduates of high-demand occupations. In 2018, the country saw a 15% increase in international enrollments.

Canada

Canada, a country distinguished for its multiculturalism, is quickly becoming an attractive destination for international students. The country offers expedited visa processing for qualified individuals, as well as a 3-year work visa for graduates. In 2017, international enrollments in Canada grew by an impressive 20%.

Potential Consequences

The world’s brightest minds are an important asset for continued innovation and growth, and today, there is a mass of countries welcoming them with open arms.

While the U.S. is still the preferred destination for international students and scholars, the country’s leadership in this space is at risk. In fact, since 2001, the share of international students in America has fallen from 28% to 21%.

Will the U.S be able to maintain global competitiveness if the number of new international students enrolling continues to fall? Can the country work to cultivate a more welcoming and barrier-free route to higher education?

These are potent questions that will need to be answered, especially with a sizable economic impact on the line.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Comments

Green

Visualized: A Global Risk Assessment of 2021 And Beyond

Which risks are top of mind in 2021? We visualize the World Economic Forum’s risk assessment for top global risks by impact and livelihood.

Published

on

Visualized: A Global Risk Assessment of 2021 And Beyond

Risk is all around us. After the events of 2020, it’s not surprising that the level and variety of risks we face have become more pronounced than ever.

Every year, the World Economic Forum analyzes the top risks in the world in its Global Risks Report. Risks were identified based on 800+ responses of surveyed leaders across various levels of expertise, organizations, and regional distribution.

Which risks are top of mind in 2021?

The World’s Top Risks by Likelihood and Impact

According to WEF’s risk assessment methodology, all the global risks in 2021 fall into the following broad categories:

  • 🔵 Economic
  • 🟢 Environmental
  • 🟠 Geopolitical
  • 🔴 Societal
  • 🟣 Technological

It goes without saying that infectious diseases have now become one of the top societal risks on both metrics of likelihood and impact.

That said, environmental risks continue to dominate the leaderboard, accounting for five of the top 10 risks by impact, especially when it comes to climate action failure.

Several countries are off-track in meeting emissions goals set by the Paris Climate Agreement in 2015, while the pandemic has also delayed progress in the shift towards a carbon-neutral economy. Meanwhile, biodiversity loss is occurring at unprecedented rates.

RankTop Risks by LikelihoodTop Risks by Impact
#1🟢Extreme weather🔴Infectious diseases
#2🟢Climate action failure🟢Climate action failure
#3🟢Human environmental damage🟠Weapons of mass destruction
#4🔴Infectious diseases🟢Biodiversity loss
#5🟢Biodiversity loss🟢Natural resource crises
#6🟣Digital power concentration🟢Human environmental damage
#7🟣Digital inequality🔴Livelihood crises
#8🟠Interstate relations fracture🟢Extreme weather
#9🟣Cybersecurity failure🔵Debt crises
#10🔴Livelihood crises🟣IT Infrastructure breakdown

As for other risks, the prospect of weapons of mass destruction ranks in third place for potential impact. In the global arms race, a single misstep would trigger severe consequences on civil and political stability.

New Risks in 2021

While many of the risks included in the Global Risks Report 2021 are familiar to those who have read the editions of years past, there are a flurry of new entries to the list this year.

Here are some of the most interesting ones in the risk assessment, sorted by category:

Societal Risks

COVID-19 has resulted in a myriad of knock-on societal risks, from youth disillusionment and mental health deterioration to livelihood crises. The first two risks in particular go hand-in-hand, as “pandemials” (youth aged 15-24) are staring down a turbulent future. This generation is more likely to report high distress from disrupted educational and economic prospects.

At the same time, as countries prepare for widespread immunization against COVID-19, another related societal risk is the backlash against science. The WEF identifies vaccines and immunization as subjects susceptible to disinformation and denial of scientific evidence.

Economic Risks

As monetary stimulus was kicked into high gear to prop up markets and support many closed businesses and quarantined families, the economic outlook seems more fragile than ever. Debt-to-GDP ratios continue to rise across advanced economies—if GDP growth stagnates for too long, a potential debt crisis could see many businesses and major nations default on their debt.

With greater stress accumulating on a range of major industries such as travel and hospitality, the economy risks a build-up of “zombie” firms that drag down overall productivity. Despite this, market valuations and asset prices continue to rise, with equity markets rewarding investors betting on a swift recovery so far.

Technological Risks

Last but not least, COVID-19 has raised the alert on various technological risks. Despite the accelerated shift towards remote work and digitalization of entire industries, the reality is that digital inequality leaves those with lower digital literacy behind—worsening existing inequalities.

Big Tech is also bloating even further, growing its digital power concentration. The market share some companies hold in their respective sectors, such as Amazon in online retail, threatens to erode the agency of other players.

Assessing the Top 10 Risks On the Horizon

Back in mid-2020, the WEF attempted to quantify the biggest risks over an 18-month period, with a prolonged economic recession emerging on top.

In this report’s risk assessment, global risks are further classified by how soon their resulting threats are expected to occur. Weapons of mass destruction remain the top risk, though on a much longer scale of up to 10 years in the future.

RankRisk%Time Horizon
#1🟠Weapons of mass destruction62.7Long-term (5-10 years)
#2🔴Infectious diseases58Short-term risks (0-2 years)
#3🔴Livelihood crises55.1Short-term risks (0-2 years)
#4🔵Asset bubble burst53.3Medium-term risks (3-5 years)
#5🟣 IT infrastructure breakdown53.3Medium-term risks (3-5 years)
#6🔵Price instability52.9Medium-term risks (3-5 years)
#7🟢Extreme weather events52.7Short-term risks (0-2 years)
#8🔵Commodity shocks52.7Medium-term risks (3-5 years)
#9🔵Debt crises52.3Medium-term risks (3-5 years)
#10🟠State collapse51.8Long-term (5-10 years)

Through this perspective, COVID-19 (and its variants) remains high in the next two years as the world scrambles to return to normal.

It’s also clear that more economic risks are taking center stage, from an asset bubble burst to price instability that could have a profound effect over the next five years.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Green

Visualizing Countries by Share of Earth’s Surface

There are 510 million km² of area on the Earth, but less than 30% of this is land. Here’s the share countries make up of the Earth’s surface.

Published

on

countries by share of earth's surface

Visualizing Countries by Share of Earth’s Surface

There are over 510 million square kilometers of area on the surface of Earth, but less than 30% of this is covered by land. The rest is water, in the form of vast oceans.

Today’s visualization uses data primarily from the United Nations Statistics Division (UNSD) to rank the world’s countries by their share of Earth’s surface.

Breakdown of Countries Share of Earth’s Surface

The largest countries by surface area are Russia (3.35%), Canada (1.96%), and China (1.88%).

Together they occupy roughly 7.2% of Earth’s surface. Russia is so big that even if we divided the country between its Asian and European sections, those new regions would still be the largest in their respective continents.

Country / DependencyTotal in km² (mi²)Percentage of Earth's Surface
Russia17,098,246 (6,601,670)3.352%
Antarctica14,000,000 (5,400,000)2.745%
Canada9,984,670 (3,855,100)1.958%
China9,596,961 (3,705,407)1.881%
United States9,525,067 (3,677,649)1.867%
Brazil8,515,767 (3,287,956)1.670%
Australia7,692,024 (2,969,907)1.508%
India3,287,263 (1,269,219)0.644%
Argentina2,780,400 (1,073,500)0.545%
Kazakhstan2,724,900 (1,052,100)0.534%
Algeria2,381,741 (919,595)0.467%
D.R. Congo2,344,858 (905,355)0.460%
Greenland (Denmark)2,166,086 (836,330)0.425%
Saudi Arabia2,149,690 (830,000)0.421%
Mexico1,964,375 (758,449)0.385%
Indonesia1,910,931 (737,815)0.375%
Sudan1,861,484 (718,723)0.365%
Libya1,759,540 (679,360)0.345%
Iran1,648,195 (636,372)0.323%
Mongolia1,564,110 (603,910)0.307%
Peru1,285,216 (496,225)0.252%
Chad1,284,000 (496,000)0.252%
Niger1,267,000 (489,000)0.248%
Angola1,246,700 (481,400)0.244%
Mali1,240,192 (478,841)0.243%
South Africa1,221,037 (471,445)0.239%
Colombia1,141,748 (440,831)0.224%
Ethiopia1,104,300 (426,400)0.216%
Bolivia1,098,581 (424,164)0.215%
Mauritania1,030,700 (398,000)0.202%
Egypt1,002,450 (387,050)0.197%
Tanzania945,087 (364,900)0.185%
Nigeria923,768 (356,669)0.181%
Venezuela916,445 (353,841)0.180%
Pakistan907,843 (350,520)0.178%
Namibia825,615 (318,772)0.162%
Mozambique801,590 (309,500)0.157%
Turkey783,562 (302,535)0.154%
Chile756,102 (291,933)0.148%
Zambia752,612 (290,585)0.148%
Myanmar676,578 (261,228)0.133%
Afghanistan652,230 (251,830)0.128%
South Sudan644,329 (248,777)0.126%
Somalia637,657 (246,201)0.125%
Central African Republic622,984 (240,535)0.122%
Ukraine603,500 (233,000)0.118%
Madagascar587,041 (226,658)0.115%
Botswana581,730 (224,610)0.114%
Kenya580,367 (224,081)0.114%
France543,940 (210,020)0.107%
Yemen527,968 (203,850)0.104%
Thailand513,120 (198,120)0.101%
Spain505,992 (195,365)0.099%
Turkmenistan488,100 (188,500)0.096%
Cameroon475,442 (183,569)0.093%
Papua New Guinea462,840 (178,700)0.091%
Sweden450,295 (173,860)0.088%
Uzbekistan447,400 (172,700)0.088%
Morocco446,550 (172,410)0.088%
Iraq438,317 (169,235)0.086%
Paraguay406,752 (157,048)0.080%
Zimbabwe390,757 (150,872)0.077%
Norway385,207 (148,729)0.076%
Japan377,976 (145,937)0.074%
Germany357,114 (137,882)0.070%
Republic of the Congo342,000 (132,000)0.067%
Finland338,424 (130,666)0.066%
Vietnam331,212 (127,882)0.065%
Malaysia330,803 (127,724)0.065%
Ivory Coast322,463 (124,504)0.063%
Poland312,696 (120,733)0.061%
Oman309,500 (119,500)0.061%
Italy301,339 (116,348)0.059%
Philippines300,000 (120,000)0.059%
Ecuador276,841 (106,889)0.054%
Burkina Faso274,222 (105,878)0.054%
New Zealand270,467 (104,428)0.053%
Gabon267,668 (103,347)0.052%
Guinea245,857 (94,926)0.048%
United Kingdom242,495 (93,628)0.048%
Uganda241,550 (93,260)0.047%
Ghana238,533 (92,098)0.047%
Romania238,397 (92,046)0.047%
Laos236,800 (91,400)0.046%
Guyana214,969 (83,000)0.042%
Belarus207,600 (80,200)0.041%
Kyrgyzstan199,951 (77,202)0.039%
Senegal196,722 (75,955)0.039%
Syria185,180 (71,500)0.036%
Cambodia181,035 (69,898)0.035%
Uruguay176,215 (68,037)0.035%
Somaliland176,120 (68,000)0.035%
Suriname163,820 (63,250)0.032%
Tunisia163,610 (63,170)0.032%
Bangladesh148,460 (57,320)0.029%
Nepal147,181 (56,827)0.029%
Tajikistan143,100 (55,300)0.028%
Greece131,957 (50,949)0.026%
Nicaragua130,373 (50,337)0.026%
North Korea120,540 (46,540)0.024%
Malawi118,484 (45,747)0.023%
Eritrea117,600 (45,400)0.023%
Benin114,763 (44,310)0.022%
Honduras112,492 (43,433)0.022%
Liberia111,369 (43,000)0.022%
Bulgaria111,002 (42,858)0.022%
Cuba109,884 (42,426)0.022%
Guatemala108,889 (42,042)0.021%
Iceland103,000 (40,000)0.020%
South Korea100,210 (38,690)0.020%
Hungary93,028 (35,918)0.018%
Portugal92,226 (35,609)0.018%
Jordan89,342 (34,495)0.018%
Serbia88,361 (34,116)0.017%
Azerbaijan86,600 (33,400)0.017%
Austria83,871 (32,383)0.016%
United Arab Emirates83,600 (32,300)0.016%
Czech Republic78,865 (30,450)0.015%
Panama75,417 (29,119)0.015%
Sierra Leone71,740 (27,700)0.014%
Ireland70,273 (27,133)0.014%
Georgia69,700 (26,900)0.014%
Sri Lanka65,610 (25,330)0.013%
Lithuania65,300 (25,200)0.013%
Latvia64,559 (24,926)0.013%
Togo56,785 (21,925)0.011%
Croatia56,594 (21,851)0.011%
Bosnia and Herzegovina51,209 (19,772)0.010%
Costa Rica51,100 (19,700)0.010%
Slovakia49,037 (18,933)0.010%
Dominican Republic48,671 (18,792)0.010%
Estonia45,227 (17,462)0.009%
Denmark43,094 (16,639)0.008%
Netherlands41,850 (16,160)0.008%
Switzerland41,284 (15,940)0.008%
Bhutan38,394 (14,824)0.008%
Taiwan36,193 (13,974)0.007%
Guinea-Bissau36,125 (13,948)0.007%
Moldova33,846 (13,068)0.007%
Belgium30,528 (11,787)0.006%
Lesotho30,355 (11,720)0.006%
Armenia29,743 (11,484)0.006%
Solomon Islands28,896 (11,157)0.006%
Albania28,748 (11,100)0.006%
Equatorial Guinea28,051 (10,831)0.005%
Burundi27,834 (10,747)0.005%
Haiti27,750 (10,710)0.005%
Rwanda26,338 (10,169)0.005%
North Macedonia25,713 (9,928)0.005%
Djibouti23,200 (9,000)0.005%
Belize22,966 (8,867)0.005%
El Salvador21,041 (8,124)0.004%
Israel20,770 (8,020)0.004%
Slovenia20,273 (7,827)0.004%
Fiji18,272 (7,055)0.004%
Kuwait17,818 (6,880)0.003%
Eswatini17,364 (6,704)0.003%
East Timor14,919 (5,760)0.003%
The Bahamas13,943 (5,383)0.003%
Montenegro13,812 (5,333)0.003%
Vanuatu12,189 (4,706)0.002%
Qatar11,586 (4,473)0.002%
The Gambia11,295 (4,361)0.002%
Jamaica10,991 (4,244)0.002%
Kosovo10,887 (4,203)0.002%
Lebanon10,452 (4,036)0.002%
Cyprus9,251 (3,572)0.002%
State of Palestine6,020 (2,320)0.001%
Brunei5,765 (2,226)0.001%
Trinidad and Tobago5,130 (1,980)0.001%
Cape Verde4,033 (1,557)0.001%
Samoa2,842 (1,097)0.001%
Luxembourg2,586 (998)0.001%
Mauritius2,040 (790)0.000%
Comoros1,862 (719)0.000%
São Tomé and Príncipe964 (372)0.000%
Kiribati811 (313)0.000%
Bahrain778 (300)0.000%
Dominica751 (290)0.000%
Tonga747 (288)0.000%
Singapore728 (281)0.000%
Federated States of Micronesia702 (271)0.000%
Saint Lucia616 (238)0.000%
Andorra468 (181)0.000%
Palau459 (177)0.000%
Seychelles452 (175)0.000%
Antigua and Barbuda442 (171)0.000%
Barbados430 (170)0.000%
Saint Vincent and the Grenadines389 (150)0.000%
Grenada344 (133)0.000%
Malta316 (122)0.000%
Maldives300 (120)0.000%
Saint Kitts and Nevis261 (101)0.000%
Marshall Islands181 (70)0.000%
Liechtenstein160 (62)0.000%
San Marino61 (24)0.000%
Tuvalu26 (10)0.000%
Nauru21 (8.1)0.000%
Monaco2.02 (0.78)0.000%
Vatican City0.49 (0.19)0.000%

Antarctica, although not a country, covers the second largest amount of land overall at 2.75%. Meanwhile, the other nations that surpass the 1% mark for surface area include the United States (1.87%), Brazil (1.67%), and Australia (1.51%).

The remaining 195 countries and regions below 1%, combined, account for the other half of Earth’s land surface. Among the world’s smallest countries are the island nations of the Caribbean and the South Pacific Ocean. However, the tiniest of the tiny are Vatican City and Monaco, which combine for a total area of just 2.51 km².

The remaining 70% of Earth’s surface is water: 27% territorial waters and 43% international waters or areas beyond national jurisdiction.

Areas Beyond National Jurisdiction

In the past, nations adhered to the freedom-of-the-seas doctrine, a 17th century principle that limited jurisdiction over the oceans to a narrow area along a nation’s coastline. The rest of the seas did not belong to any nation and were free for countries to travel and exploit.

This situation lasted into the 20th century, but by mid-century there was an effort to extend national claims as competition for offshore resources became increasingly fierce and ocean pollution became an issue.

In 1982, the United Nations adopted the Law of the Sea Convention which extended international law over the extra-territorial waters. The convention established freedom-of-navigation rights and set territorial sea boundaries 12 miles (19 km) offshore with exclusive economic zones up to 200 miles (322 km) offshore, extending a country’s influence over maritime resources.

Does Size Matter?

The size of countries is the outcome of politics, economics, history, and geography. Put simply, borders can change over time.

In 1946, there were 76 independent countries in the world, and today there are 195. There are forces that push together or pull apart landscapes over time. While physical geography plays a role in the identity of nations, Sheikh Zayed bin Sultan Al Nahyan, the former ruler of UAE, a tiny Gulf nation, put it best:

“A country is not measured by the size of its area on the map. A country is truly measured by its heritage and culture.”

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Subscribe

Join the 220,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular