For example, the recent stock market crash in the US in the housing market did not only dent the US financial markets, but it also affected financial markets in Europe and the UK was no exception, with Northern Rock being the most visible example of these ripple effects. In much the same way, higher education has become global, and the effects in one geographical region will be transposed globally and affect other higher education sectors.
If this was not the case, then France and Germany would not be investing in providing courses in the English language, nor would they spend large amounts of money on international markets to attract foreign students. Universities in Europe are being given more administrative freedom which will enable them to operate like a private business (Williamson 2006), which questions the current management and administration structure of higher education institutions in today’s society. Likewise, countries such as China and India are building up their higher educational institutions, and the reasons are most probably linked to globalisation.
However, it is also important to understand how higher education institutions have a role in mediating between global knowledge and its application or reception local contexts (Williamson 2006). This suggests that higher education institutions represent one of the highest levels of the workings of globalisation from their knowledge transfer, but this is somewhat not compatible with the way they are managed and funded.