Running head: THE THREE-YEAR BACHELORS DEGREE 1

Comparing a Four-Year Liberal Arts Degree in America with a

Three-Year Bachelor of Arts in Europe: The Competitive Environment of Both Degrees
Michael D. Ballantine
Andrews University
THE THREE-YEAR BACHELORS DEGREE 2


Comparing a Four-Year Liberal Arts Degree in America with a Three-Year Bachelor of Arts in
Europe: The Competitive Environment of Both Degrees
With the adoption of the Humboltian education model in the United States during the
19
th
-century higher education moved away from strictly preparing one for an occupation or
profession (Guruz, 2011). Instead, this movement led to an emphasis on research that permeates
the American educational experience encompassed within the traditional four-year liberal arts
degree. Following World War II, students began to migrate to the United States for their higher
education studies instead of Europe suggesting a preference for the research model of study
embodied in the American system (Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky
identify that this preference continues to the present time because a significant number of
students studying abroad continue to choose to study in America. However, they indicate that
trends suggest that the United States is losing ground to global competition.
Although the current emphasis on transnational education indicatess a new phenomenon,
Guruz (2011) and Wildavsky (2010) make a strong case that student mobility existed in the past
and was the norm beginning in the renaissance and through the early part of the industrial
revolution. They relate that middle-class student mobility declined because the number of
students began to increase exponentially versus the number of students desirous of a
multicultural experience. Moreover, they highlight that not only is student mobility increasing
but also the mobility of institutions and faculty as well. With improved delivery of distance
education through e-learning or online learning programs, students can pick and choose the
educational provider from not only their regional location but also globally (Guruz, 2011;
Wildavsky, 2010).

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In contrast, Guruz and Wildavsky highlight how the traditional undergraduate program in Europe
and Australia is a three-year program that concentrates on technical and professional skills
relying on a Masters Degree program to balance perceived weaknesses in the three-year
diploma.
To understand better the competitive nature of global education, one must compare the
American four-year bachelor diploma with the European three-year diploma along with their
various strengths and weaknesses. Evaluating the Bologna Process and the European Erasmus
program along with the accreditation process of these degrees provides context to the analysis as
well as the competitive advantages of the anglo-speaking countries. Finally, one must consider
the relative cost differences between the American model and the European one. Although
Guruz (2011) suggests costs are less significant in the decision-making process about where one
studies, anecdotal evidence and enrollment trends suggest otherwise.
The Ubiquitous Bachelors Degree
Most people perceive educational attainment as a path to prosperity; hence, the desire to
attend a college or university stems from this innate desire to improve one's personal wealth
(Wildavsky, 2010). Developed countries offered their citizens pathways to higher education
following World War II. With increased trade, developing countries began accumulating
sufficient wealth to promote higher education for their emerging youth as well. President Bush's
promotion of the No Child Left Behind' represents America's attempt to extend higher education
to all American youth; unfortunately, the American economy lacks the strength to implement
these desires fully. Americas loss is the worlds gain because students from China, India, and
the rest of Asia are on the move (Siddiq, 2013; Guruz, 2011; Wildavsky, 2010).
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Higher education comprises a variety of tertiary education, including vocational
education, technical training, and professional training. A bachelors degree signifies a greater
understanding of a particular discipline and the potential for advancement to management.
Strong demand exists for both general tertiary education and bachelors degrees. Moreover,
sufficient demand exists that most developing countries are unable to meet the needs of their
emerging youth (Guruz, 2011; Wildavsky, 2010). Hence, students are going to other countries to
meet their educational needs. However, Guruz and Wildavsky relate that not only are students
going to other countries but institutions are also going to other countries to meet the needs of
these students locally and regionally. Although students travelled far and wide for educational
opportunities throughout history, the movement of institutions represents a fundamental change
in global education (Guruz, 2011). It appears that clothing and restaurant chains are not the only
businesses that America can export.
Guruz (2011) and Wildavsky (2010) identify several trends among higher education
institutions. The first trend is the development of jointly delivered programs referred to as
twinning. Twinning is the practice of delivering a partner institutions curriculum and degrees at
another institutions campus or facility. Higher quality partners may provide 100% of the
curriculum locally; whereas, less established partners often deliver programs based on a formula
of two-years locally and two-years abroad (Guruz, 2011; Crowne, 2010; Wildavsky, 2010). In
the case of European programs, this could be two-years locally and one-year abroad. These
programs offer substantial savings to participants because tuition fees are lower in the host
countries as well as reduced living expenses. Further, students build stronger language
comprehension during their first two-years of study enabling to perform well when they arrive on
campus to complete their diplomas. The advantage for the curriculum provider is the ability to
THE THREE-YEAR BACHELORS DEGREE 5


extend its brand to customers who lacked the resources to participate fully(Crowne, 2010;
Wildavsky, 2010). These types of programs represent examples of educational franchising.
Although less common, many institutions are opening branch or satellite campuses
overseas. Wildavsky (2010) provides numerous examples and descriptions of American
institutions establishing branch campuses throughout the middle-east. He highlights a number of
criticisms emphasizing concerns for freedom of expression and the equal treatment of women.
Clearly local cultural variations will influence the delivery of education at satellite campuses
impeding the ability of schools to provide an equal experience (Wildavksy, 2010). Guruz
(2011) and Wildavsky relate that stakeholders at home institutions suggest that this lack of
equality limits the ability of institutions to provide diplomas from the home institution to avoid
confusion in the marketplace. However, this monocular view of education belies the potential
for satellite campuses to provide a superior educational experience to one provided at the home
institution. Moreover, by extending brand awareness overseas, the value of the diploma
increases for all participants.
The benefits to future students of satellite campuses and twinning programs are self-
evident. These students benefit from lower delivery costs, validated and accredited programs,
and market acceptance of educational qualifications (Wildavsky, 2010). From the customer
point-of-view, these programs represent measurable value. However, like the pharmaceutical
industry, American students as well as students from other developing countries will begin to
question the higher tuition fees that burden them. Christensen and Eyring (2011) maintain that
bachelors degree students subsidize graduate programs at Harvard. Likewise, students can
evaluate the difference between tuition at home campuses and tuition at overseas branches as an
inherent subsidy because the diplomas have equal value in the marketplace. Much like the
THE THREE-YEAR BACHELORS DEGREE 6


manufacturers in America, American higher education institutions will have to cut costs further
to maintain market share to avoid educational tourism as students abandons high-cost programs
at home. This cost-cutting burden will continue to effect negatively teaching staff through
reduced salaries and benefits. These cuts may translate into reduced quality at home campuses
until institutions find an appropriate balance between overseas campuses and home campuses.
The American Four-Year Diploma
In their book, The Innovative University, Christensen and Eyring (2011) describe the
influence that Harvard University maintained over the American higher education industry.
They suggest that the liberal arts degree replaced the traditional degree in classics to prepare
students for graduate studies at Harvard and other universities. According to Christensen and
Eyring, over time other colleges and universities across America replicated the Harvard program
believing that their programs would receive similar market acceptance as Harvard. Christensen
and Eyring express their concerns that attempts to duplicate the Harvard model will lead to a lack
of diversity. Their concerns mirror the concerns expressed by Guruz (2011) in his discussions
about the Indian education system.
The American bachelors degree provides students with a variety of coursework,
including cultural studies, science, and history in addition to the student's core-studies. The
belief is that students must have a broad educational background to contextualize proper
knowledge (Christensen & Eyring, 2011). According to Christensen and Eyring, without this
contextualization American students are unprepared for management roles and advanced
research. Although there may exist validity for this argument, this belief stems from the
argument of whether the purpose of higher education is for the development of a person or the
preparation for future careers. This sophomoric argument presupposes that everyone desires
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education for self-improvement when many desire educational qualifications to enhance
employment prospects. Guruz (2011) relates that many American institutions are unwilling to
accept three-year bachelors degrees from overseas for graduate studies because these degrees
focus on professional preparation and lack the knowledge contextualization necessary for
advanced degrees. One may also consider that limiting the acceptance of three-year degrees is
an attempt to justify four-year degree programs that produce competitive pressure to reduce
degree requirements in the United States.
Three-Year Bachelors Degrees
The common bachelors degree found throughout Europe as well as South Africa,
Australia, and Southeast Asia is a three-year degree program that concentrates on a professional
qualification (Guruz, 2011; Wildavsky, 2010). These degrees prepare one for a variety of
careers, including law, medicine, business, and government. Developing countries with limited
resources cannot justify building higher educational systems that are multi-tiered much like the
United States. Instead, they must concentrate resources that provide basic education to meet
growth requirements in the shortest possible timeframe. Merit exams discriminate who gets to
enroll in specific programs limiting participation to those most likely to succeed (Guruz, 2011).
Students who are unable to enroll in local institutions have the option of studying overseas
provided they can obtain a scholarship, or their family can provide sufficient financial support
(Guruz, 2011; Wildavsky, 2010).
A three-year program offers student's intent on a professional qualification a cost
effective solution to higher education. In contrast, the American four-year program adds
unnecessary costs for students' intent on education for professional opportunities. The additional
cost of one-year of education coupled with an average higher cost of education in America
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(Guruz, 2011) portends a competitive collapse in higher education in the United States. Despite
comparatively higher average tuition rates, Australia appears to be the destination of choice for
students who may have chosen America in the past (Guruz, 2011). Australia offers three-year
accredited bachelors programs in an English-speaking environment that many Chinese and
Indian students find desirable (Murray, Hall, Leask, Marginson, & Ziguras, 2011). In
conversations with Vietnamese parents, they relate a desire to school their children in Australia
because of its proximity, perceived safety, and lower costs when compared to America. The
most successful foreign university in Vietnam is RMIT with two satellite campuses located in
Vietnam. Their success further demonstrates the desire for an Australian qualification in
Vietnam and this desire has spillover effects for other Australian institutions. Although America
remains a preferred destination, practicality appears to be winning the day.
The Bologna and Erasmus Process
As part of the economic integration of the European Union (EU), the Bologna Process
exists to integrate national educational policies with the EU (Guruz, 2011; Wildavsky, 2010).
Each member state maintains degree requirements, accreditation policies, tuition structures, and
educational objectives. Guruz and Wildavsky relate that the Bologna Process seeks to align
these policies to allow transnational recognition while maintaining distinctive differences.
Ultimately, each nation will adopt a three-year diploma followed by a two-year Master's diploma
that Europe recognizes (Guruz, 2011; Wildavsky, 2010). With EU acceptance, America must
eventually reciprocate and accept the three-year diploma much like it accepts the three-year
diploma from the United Kingdom. In response, America should adopt either an accelerated
study program or an American three-year diploma to meet the competition.
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To promote further integration, the EU offers the Erasmus program designed to provide
financial support to students desirous of studying in other EU nations (Guruz, 2011; Wildavsky,
2010). Guruz and Wildavsky highlight the benefits of this program because it supports up to a
year of study in another EU member state for each degree allowing both students and faculty to
move between universities throughout Europe. Wildavsky relates that up to 10% of students
avail themselves of this program. Although the initial consequence is a reduction in studies
outside the European Union, overtime students will begin to move beyond the EU into other
areas of the globe once programs become integrated fully within the EU. A mutual recognition
treaty between the EU and the United States would promote the movement of students between
both markets.
Although the Bologna Process appears as a logical progression for higher education in
the EU, many member states face difficulties implementing it (Guruz, 2011). In Italy, weakness
in the national legislature and a weak economic environment limit the flexibility of bureaucrats
to make changes that would involve cutting staff (Carla Salvaterra, personal communication,
June 19, 2014). In contrast, Greece legislation prevents the recognition of undergraduate work
conducted outside Greece necessitating constitutional changes before the implementation of the
Bologna Process (Dimitri Apostilidis, personal communication, June 26, 2014). Unfortunately,
the direness of the Greek economy prevents unity on educational policy. Italy charges tuition;
whereas, Greek education is free. Harmonizing tuition rates is another obvious challenge for the
Bologna Process.
Extending the Bologna Process to the Russian Federation, the Arab League states, and
South Asia offers the opportunity to harmonize educational qualifications and enhance
employment opportunities for European faculty members. Europe suffers from falling birth rate
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limiting the number of future students for European institutions. Currently, Japanese institutions
suffer from declining enrollments because it limits employment for foreigners and declining
birthrates limit the number of enrolling students (Guruz, 2011). Guruz highlights how Singapore
in contrast despite declining birthrates offers attractive immigration policies and focuses on
attracting educational tourists.
The United Kingdom as well as other EU members introduced two-tiered tuition rates.
EU members pay one rate, and nonEU members pay a higher rate (Deardon, Fitzsimons, &
Wyness, 2011). Other countries outside the EU such as Australia and Singapore also offer two-
tiered programs (Guruz, 2011). Wildavsky (2010) describes the European rationale that
education is a human right; hence, denying education would violate ones human rights.
Unfortunately, declining budgets limit the number of seats available for students desirous of
tertiary education when one does not charge tuition or only charges limited tuition. In practice,
education is a human right for the meritorious or the wealthy. Offering two-tiered pricing
expands opportunities for students from the developing world because they will subsidize the
cost of faculty allowing more seats for EU citizens within the universities (Guruz, 2011).
Finally, extending secular education to neighboring states offers long-term solutions to the
current cultural conflict between the west and Islam.
Australian Success
The Australian Government (2013) reported that overseas enrollments peaked in 2009
with over 600,000 foreign students attending Australian institutions with nearly 560,000
attending in 2011. Moreover, this demonstrates marked improvement vis-a-vis their statistics for
the year 2002, when only 275,000 students attended Australian institutions. Murray et al. (2011)
highlight that falling enrollments reflect globally falling enrollments suggesting that the overseas
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student movement will be soft through 2020. Australian enrollments contrast with US foreign
student enrollment in higher education of over 720,000 in 2011 (IIE, 2011). With only a 10
th
of
the population of the United States, Australia plays host to substantially more students by
comparison. Guruz (2011) suggests that Asian students prefer Anglo-education, and they prefer
value (Murray et al., 2011). Murry et al. identify that with a three-year bachelor's degree, lower
average costs per year, and physically safe environment, Australia offers better value than
American institutions. However, employment opportunities after graduation in Australia
engender systemic limitations to further growth (Murry et al., 2011).
Murray et al. (2011) in their analysis highlight the lack of growth in Australian based
transnational programs. They indicate that although enrollments in individual programs are
higher than in the past, the number of individual programs is lower. In a stunning reversal, the
University of New South Wales closed its campus in Singapore after only one semester because
it found itself overpriced in the market (Guruz, 2011; Wildavsky, 2010; Croom, 2010); whereas,
RMITs program in Vietnam dominates the market with nearly 6,000 students (Clark, 2013),
nearly a tenth of Australia's reported transnational students (Murray et al., 2011). Croom (2010)
suggests that the highly competitive market in Singapore prevented the University of New South
Wales from meeting its target; whereas, RMIT faces few competitors of quality in Vietnam.
Establishing branch campuses in the ASEAN emerging market countries offer better prospects
for Australian institutions to extend their brands than in well developed markets such as
Singapore, Hong Kong, Japan, or Korea (Guruz, 2011).
European Higher Education
Historically, European universities were the destination of choice for students until the
advent of World War II (Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky highlight that
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faced with lower budgets and declining enrollments, European universities have begun to adjust
tuition policies to make themselves more attractive to overseas students. The Erasmus program
improved student mobility, but French and German universities seek to reestablish their presence
in the global markets for students (Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky
believe that the establishment of English language based diploma programs are essential to
attracting foreign students to continental Europe.
The United Kingdom began a two-tiered tuition program to encourage its institutions to
enroll foreign students. Guruz (2011) suggests that this program is working. Murray et al.
(2011) highlight that the United Kingdom is proving to be a competitive challenger for Australia.
In contrast, Germany abolished tuition fees in most of its institutions portending budget cuts that
may limit the enrollment of foreign students (Hotson, 2014). Over the past several years,
Germany attempted to differentiate its institutions and make them more attractive to foreign
students and faculty (Guruz, 2011). In the past, Turkish, Chinese, and Greek students dominated
foreign students in Germany (Isserstedt & Schnitzer, 2005); whereas, Chinese students
supplanted Turkish students as the primary source country because of low tuition rates and
employment opportunities after graduation (Hairsine, 2012).
In contrast, France suffers from existential angst vis--vis the French language inhibiting
its ability to promote English language based programs (Guruz, 2011). According to Guruz,
most foreign students come from former colonies or other European states. Guruz and
Wildavsky (2010) highlight several schools that established English language based programs
but most French academics prefer to focus on traditional programs taught in French. However,
the Nordic states, Sweden, Norway, and Finland, promote English language based programs
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because few people outside the region speak their native languages. These countries anticipate a
resurgence in interest despite their small populations (Guruz, 2011).
The Deterrence of High Tuition Fees
Logically one may consider high tuition fees as a deterrent to student mobility.
American institutions have the highest average tuition fees, and Australia has the second highest
(Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky report that despite higher tuition rates,
America continues to attract students in large numbers; although, they note that Americas
attraction is falling as a percentage of total transient foreign students. In the United States, high
average tuition rates reflect increases at private and for-profit institutions. Many state schools
and community colleges remain competitively priced offering value to foreign students.
Table 1

Average Tuition Fees in the United States (New America Foundation, 2013)
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Table 1 provides a clear analysis of the differences in cost between public and private
institutions. Although American education is more expensive on average, there remain
economically attractive options as well for overseas students. A larger deterrent for foreign
students is their inability to work in America after completing their degree. Fischer (2014),
Guruz, Wildavsky, Murray et al. (2011), and Croom (2010) identify this expectation as a key
determinant for foreign students considering a program overseas. Among American nationals,
the high cost of tuition along with the need to incur substantial student loan debt appears to be an
important criteria for choosing educational providers or foregoing higher education (Baum &
Schwartz, 2013). Although Americans have not begun to look overseas for educational bargains
in large numbers (Guruz, 2011; Murray et al., 2011; Wildavsky, 2010), the proliferation of
online programs, e-learning, and regional accreditation programs such as the Bologna Process
may influence future students.
Table 2

Comparing Annual Tuition Fees to Students Receiving Subsidies (Science Guide, 2012)
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Table 2 helps explain why students from America and Australia prefer to study at local
institutions versus studying abroad (Guruz, 2011). With high levels of subsidies, students can
meet most of their educational costs through grants and loans. Other countries like Japan offer
fewer subsidies; hence, Japan's students are more likely to travel abroad (Guruz, 2011).
Siddiq (2013) relates that high tuition fees are not a strong deterrent to Chinese students
because of rising incomes among the middle-class. He highlights that these Chinese students are
less interested in remaining in the United States; hence, internships and work permits are not
necessary. This change in demand explains why Chinese student enrollment in American
institutions is rising; whereas, Indian enrollments are falling (Siddiq, 2013).
Online and E-Learning Education as a Commodity
The proliferation of online training and distance education globally offers students
opportunities to enroll in overseas institutions without the associated high cost of living in the
developed world. Nagel (2014) reports that 12% of students in the United States attend online
degree programs while another 13% participate in online learning. Tyson (2014) suggests that
the provision of MOOCs courses to recruit overseas students offers significant benefits to
recruitment efforts by American institutions. MOOCs are free online courses that teach specific
skills, but do not count as credit toward degree or diploma programs. Upon completion of an
MOOCs course, successful participants may receive a certificate of completion for a small fee.
Unfortunately, relevant statistics on the enrollment of international students in online courses are
not available. Anecdotal evidence in Vietnam suggests students prefer face-to-face instruction
versus online instruction. However, as online participation rates increase in the United States
and online programs become more standardized, the potential exists for international students to
enroll in them in greater numbers.
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Adapting the American Education Model
Christensen and Eyring (2011) along with Guruz (2011) relate that the resistance to
changing the four-year bachelor program exists among academics. Siddiq (2013) suggests
"Chinese students prefer the US because the universities offer more academic choices. In the
UK, students are expected to choose a major at enrollment and stay focused on it during the
course of the program" (para. 7). In conversations with prospective students in Vietnam, most
students preferred studying a subject related to business. For these students, a professional
bachelors degree program like those offered in the United Kingdom or Australia may be more
suitable.
Guruz (2011) relates that American institutions are hesitant to offer different diplomas at
overseas branches or for twinning programs. The United Kingdom offers a three-year bachelors
degree, and if one completes a fourth-year, one receives honors. American institutions can meet
demands for lower tuition fees among American nationals and the needs of overseas students by
offering a similar program. Unfortunately, the economics work against such a strategy because
only 4% of enrolled students in American institutions are foreigners (UWN Journalists, 2014).
Schools would need to recruit 25% more students both within the states and from without to
offset the potential decrease of up to 25% in enrollments by offering a three-year bachelor's
degree program. A normal business would not view this as economically feasible; whereas a
university may consider it given the current budget pressures that they face and the preference
for improving people's lives versus the need to generate quarterly earnings (Murray et al., 2011).
Christensen and Eyring (2011) believe a three-year diploma is possible if students attend
school during the summer or switch to a four-term year. Although, this does not reduce the
tuition fees, it would reduce the living expenses by 25%. The second consideration is the lack of
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interest in the humanities by American students. Although, Mateos (2013) makes a strong
argument that the interest in the humanities is stable, the current economic crisis coupled with
higher tuition rates suggests that future enrollments will concentrate on professional degrees.
Without the additional humanities courses required in a typical four-year bachelors degree
program, institutions implementing a three-year bachelors degree program would have fewer
students to amortize teaching salaries for these lecturers potentially forcing the elimination of
marginally attended programs (Christensen & Eyring, 2011). Sharma (2011) suggests that
increased enrollments by international students may fill the gap because in non-English language
programs, foreign students prefer the humanities.
American institutions offering online degree programs can adapt easily to a three-year
bachelors degree program because many of their faculty are adjunct or part-time limiting their
exposure to long-term employment contracts or tenure obligations (Mueller, Mandernach, &
Sanderson, 2013). Small private colleges with fewer faculty but a strong international presence
could also benefit from establishing first-mover positions. Although these institutions may
experience an initial dip in revenues during the adjustment from primarily providing four-year
programs to three-year programs, institutions with savvy marketing departments can make up the
losses through aggressive recruitment.
An institution such as Andrews University with about 1,600 undergraduate students and a
high proportion of international students could build upon its current student base to expand
enrollments by offering a program that offers savings of 25% offsetting student concerns about
higher tuition fees. Further, Andrews' program in Vietnam would be more competitive in the
marketplace with RMIT's three-year bachelors degree program enabling their Vietnamese
twinning program in Hanoi to attract additional students. Without a three-year bachelors degree
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program to offer Vietnamese students, the twinning program will continue to receive lackluster
interest in the Vietnamese marketplace. Instead of a 3 + 1 program (one year at Andrews)
currently envisioned, a 2 + 1 program offers greater opportunities for brand extension.
In contrast to the Andrews program, Pegasus International Unicollege in Vietnam offers a
three-year bachelor's degree program in business in partnership with Edinburgh Napier
University (ENU) in Scotland. ENU offers a 2 + 1 program that provides each participant with
a bachelor's degree that is recognized in the United States. Regardless of the relative strengths of
Andrews or ENU, there is a substantial cost difference between the two programs that may or
may not be justified. However, upon completion of the degrees the marketplace will accept both
degrees equally in Vietnam regardless of their cost. The primary difference between the
programs is the level of English required for the final year. Andrews requires a 5.0 on the IELTS
test and the government of the United Kingdom requires a 6.0 on an IELTS test for a visa. By
modifying their program, Andrews would become more competitive on an English requirements
basis justifying its higher tuition fees.
Conclusion
In the near term, demand for American style higher education will continue unabated.
With nearly 900,000 foreign students enrolled in American institutions, America will continue its
domination of the global market (UWN Journalists, 2014); however, America once dominated
international trade as well as global manufacturing and has since given over its leadership to
China and Germany. Much like manufacturing, America cannot rest upon its previous
experience and assume that foreign students or even American students will be willing to
continue to pay substantially higher tuition fees for a comparable education that foreign
providers are willing to provide for less. Adapting the traditional four-year bachelors degree to
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the European professional three-year degree is one change that will meet future competitive
pressures. Establishing overseas campuses in high demand regions is another way to meet these
competitive pressures (Guruz, 2011).




















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