Aishath Izna / CB 005862

TABLE OF CONTENTS
Answer [ Page 2-6 ]
Introduction..
page 2
How globalization affects the society and new trends in
globalization....page 3
Theoretical background of market mechanism and
how higher education system responds to the market changes.
page 5
Conclusion
page 6
Reference..
Page 7

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ANSWER
INTRODUCTION
Globalization means increasing integration on a global level with respect to
the economic, social, cultural and political levels through advancement of
technology, transportation and mass communications. These advancements
together with the numerous inventions driven by the new knowledge have
brought about a major change in the world today. It is possible for people in
one side of the world to watch happenings from other side via social media
and to communicate with people from all around the world with great
easiness. As quoted by Duderstadt (2007), Thomas Friedman stresses in his
provocative book, The World is Flat, information and telecommunications
technologies have created a platform where intellectual work and
intellectual capital can be delivered from anywheredisaggregated,
delivered, distributed, produced, and put back together again, or in current
business terms, this gives an entirely new freedom to the way we do work,
especially work of an intellectual nature (Friedman, 2005).

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HOW GLOBALIZATION AFFECTS THE SOCIETY AND NEW TRENDS IN

GLOBALIZATION.
Globalization affects the world and its people in many ways. It is influential
on all aspects of the society. The world becoming global has led to the linking
of economic and cultural activities across the world, affecting the tradition,
culture and economy status of a country. Higher education may be one of the
most affected area by global trends. The days when higher education was a
matter of national policy and government regulation have started to fade
away into history. Globalization is influencing the institutional outline in
developing and industrial countries. The way in which national authorities
understand their role in the society is changing, which results in a change in
socio economic development and educational systems of countries all over
the World.
The effects of globalization on education have brought rapid developments in
technology. Communications are foreseeing changes within learning systems
across the world as ideas, values and knowledge, changing the roles of
students and teachers, and producing a shift in society from industrialization
towards an information-based society (Chinnamai, 2005). The evolution of
information technology has enhanced the relationship between economic
development and higher education. Furthermore, it has increased
competition between universities and higher education institutes. Thus,
governments and universities are becoming more responsible for

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improvement in higher education. Mishra (2013) has mentioned that

according to Gregor (2002), the shift toward globalization has encouraged
academic institutions, especially US universities, to improve the skills of their
graduates to meet the needs of national and international markets.
Globalization also allows getting education from abroad resulting in spread of
high quality education. Globalization breaks down barriers and connects
institutions across the world making universities in every country visible to
each other, facilitating knowledge flows, values on global learning, and
creation of new opportunities for advanced graduates (Sing and Papa, 2010).
OECD data show that the number of students attending institutions outside
their country of origin tripled between 1985 and 2008 (Yelland, 2014).
Moreover, estimates predict the rise to 7 million international students by
2020 (Altbach, Reisberg and Rumbley, 2009). Introduction of private
universities, E-learning and distance education programs training and online
institutions have enriched the skills of childrens. As quoted by Chinnamai
(2005) the rise of a global society, driven by technology and communication
developments are shaping children, the future citizens of the world into
global citizens, intelligent people with a broad range of skills and knowledge
to apply to a competitive, information based society.
The current globalization of higher education creates both challenges and
opportunities. Distributing world class education with updated curriculum
and real world experience has been a challenge and a main concern of the
government due to expansion in mobility of students and graduates. The
western styles of education and culture have brought a new form of cultural
imperialism. Cloete et.al (2006) revealed agreeing to the Norwegian political
scientist Olsen that the traditional pact between society and higher
education has become problematic. The dark side of globalization which
distress most people is that it has expanded the gap between the rich and
poor.

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After privatization, education has also become a business where people can
access it after a payment of suitable prices. Cloete et.al (2004) stated that
according to Gumport there is a growing tension between two dominant
perspectives on higher education: the first interprets higher education as a
social institution while the second sees higher education mainly as a part of
the national economy, in other words as an industry. Privatization leads to
competition between private and public universities and institutions which
results in rise of fee structure in order to compete on providing a quality
qualification with the modern technology and tools. Education has become
the most valuable factor on creating a successful future, increasing the
number of students enrolling day by day. With the introduction and rise of fee
structures, although many countries and institutions offer various
scholarships and other financial assistance, countless students look after
themselves financially. This raises the rate of people who could not afford a
qualitative education mounting the education gap between the rich and poor.

THEORETICAL BACKGROUND OF MARKET MACHANISM AND HOW

HIGHER EDUCATION SYSTEM RESPONDS TO THE MARKET CHANGES
The integration of world markets is beneficial to all economic factors. Larger,
international markets allowing for more efficient, effective allocation of
limited human, physical and financial resources result in global competition
which brings up innovation and improvement in organizations, goods and
services. Moreover, free movement of factors of production between
countries maximizes effectiveness of their use at the global level which
encourages governments to introduced market mechanisms. These market
mechanisms lead to economic growth, international development and,
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overall, advanced standards of living driving further migration of population.

However, the flow of people across the global economy challenges many
nations. As stated by Worthington and Britton (2009) the OECD estimates
that the percentage of the world population living outside their country of
birth doubled between 1985 and 2000.
The market mechanism in education have given rise to debates in political
and scientific leaders agreeing to new concepts and ideas. The introduction
of market mechanism in association of increased innovation has improved
the quality of education. Provision of enhanced education and qualification
resulted in increase in number of students enrolled in higher education. As
higher education has grown and expanded, it has also become more
international. The Economist Survey 'Higher Education: Free degrees to fly' ,
on higher education indicates that private profit seeking companies have
entered the education business, even government-controlled universities are
seeking independence from governmental authority while annual fee income
alone is estimated at $ 30 billion. Today, the total revenue earned by
universities is increasing, and education has become one of the worlds
largest exports.

CONCLUSION
Globalization has changed the role of the government in the society. It has
replaced the current culture patterns with a unique framework for the
functioning of global markets. Globalization has had many obvious effects on
higher education and the market mechanism of higher education. The way
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education is delivered has been changed through the advancement of

technology, communication and free trade, changing the roles played by
parents, teachers and students. Education has become the most essential
investment in making human capital that brings about major technological
innovation and economic growth. Hence, societies which were focused on
manufacturing are transforming to knowledge societies. The effects of higher
education policies which were introduced and put into act at a national level
can no longer be understood only by examining the policy process in a
national perspective. The framework of globalization of higher education
needs to be established from the viewpoints of different important
proportions like, Socio-Economic, Political and Academic. The impacts, new
trends and latest market mechanisms have to be recognized and well
understood in order to create a more prosperous future.

REFERENCE

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1- Altbach,P.G., Reisberg,L., and Rumbley,L.E.(2009)Trends in Global

Higher Education: Tracking an Academic Revolution,United
Nations Education, Scientific and Cultural Organization.
[Online]Availabale at:
http://unesdoc.unesco.org/images/0018/001831/183168e.pdf
[Accessed on 20th August 2014]
2- BRITTION,C and WORTHINGTON,I.(2009) The business
Environment.6th edition.United Kingdom.Pearson Education
Limited.
3- CHINNAMMAI,S.(2005)Effects of Globalization on Education and
Culture,ICDE International conference,19-23 November.
[Online]Availabale at:
http://guidedresearchwriting.pbworks.com/w/file/fetch/53952209/i
mactofglobalization_edandculture.pdf
[Accessed on 21st August 2014]
4- CLOETE,N.et.al.(2006)Transformation in Higher Education Global
Pressures and Local Realities, Pages 7-33.The Netherlands.
Springer.[Online] Available at:
http://link.springer.com/chapter/10.1007%2F1-4020-40067_2#page-1
[Accessed on 21st August 2014]
5- CLOETE,N.et.al.(2004) Transformation in Higher Education
Global Pressures and Local Realities in South Africa.2 nd edition.The
Netherlands. Kluwer Academic Publishers.
6- DUDERSTADT,J.J.,(2007) Higher Education in the 21st Century:
Global Imperatives, Regional Challenges, National
Responsibilities, and Emerging Opportunities.[Online] Available
at: http://milproj.dc.umich.edu/pdfs/2008/Glion%20VI
%20Globalization.pdf
[Accessed on 20th August 2014]

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7- MISHARA,R.(2013)Globalization and Higher Education Threat

or Opportunity.Interational Journal of Humanities and Social
Science.[Online] ISBN 978-93-83006-16-8.Vol 1 (01).page 3947.Available at:
http://www.academia.edu/4243654/GLOBALISATION_AND_HI
GHER_EDUCATION_THREAT_OR_OPPORTUNITY
[Accessed on 20th August 2014]
8- PAPA,R and SING,N.(2010)The Impacts of globalization in
higher education.NCPEA State Affiliate Journals.
[online]Volume 5 number 2. Available at:
http://www.ncpeapublications.org/volume-5-number-2/35the-impacts-of-globalization-in-higher-education.html
[Accessed on 20th August 2014]
9- THE ECONOMIST.(2005) Higher Education,Free degrees to
fly,Already a big global business, is higher education poised
for take-off?,24th February.[Online] Available at:
http://www.economist.com/node/3690585
[Accessed on 20th August 2014]
10YELLAND,R.(2011)The Globalization of higher
education,OECD Observer.[Online]Available at:
http://www.oecdobserver.org/news/fullstory.php/aid/3731/The
_globalisation_of_higher_education.htmlsthash.BZaAk4Ow.dp
uf
[Accessed on 25th August 2014]

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