Financial Implication of Financial Implication of Study Abroad ProgrammesStudy Abroad Programmes

Dr. Kofi Nkrumah-YoungDr. Kofi Nkrumah-Young

Types of ProgrammeTypes of Programme

GeneralGeneral Specially designedSpecially designed

Elements of costElements of cost

AdministrativeAdministrative SecuritySecurity

Students SpecificStudents Specific Health insuranceHealth insurance LivingLiving TuitionTuition Airfare Airfare Local travelLocal travel Field trips & excursionsField trips & excursions Instructional materialsInstructional materials othersothers

issuesissues

Cost recovery from incoming and outgoing Cost recovery from incoming and outgoing students because of administration and students because of administration and security to the institutionsecurity to the institution

Cost/benefitCost/benefit International profileInternational profile Quality imageQuality image Students (improved education, international Students (improved education, international

citizen, politically aware individualcitizen, politically aware individual

Issues cont’dIssues cont’d

International agreement to minimise the costInternational agreement to minimise the cost Socrates and Erasmus programmesSocrates and Erasmus programmes Home cost to students of EU CountriesHome cost to students of EU Countries How financing policy of the region benefitHow financing policy of the region benefit

Bilateral agreements between institutions to Bilateral agreements between institutions to hedge against costhedge against cost Minimise cost to studentsMinimise cost to students Reciprocal arrangementsReciprocal arrangements

Issues cont’dIssues cont’d

How are the fees charged and apportioned How are the fees charged and apportioned between participating institutionsbetween participating institutions

Exchange rate risk Exchange rate risk Earning in one currency and spending in anotherEarning in one currency and spending in another US$2.18/GBP sellingUS$2.18/GBP selling US$1.89/GBPUS$1.89/GBP Spread of 29centsSpread of 29cents What hedging strategiesWhat hedging strategies

conclusionconclusion

Quality is essential but we have to prepare to Quality is essential but we have to prepare to deal with the costs. Cost and benefits must be deal with the costs. Cost and benefits must be weighedweighed

Awareness is the key.Awareness is the key.