Washtenaw County FY
04
International
Business Economic Impact Assessment
Executive Summary
Prepared by Ellen
Cynar, Lewis and Clark University
Summer Intern
As
Washtenaw County increases in its size
and capacity, so too does the
county’s impact on the global
economy. While many assume that United
States international business
transactions take place in highly
developed, urban areas, such an
assessment does not account for the
strong connections that smaller
economic areas, such as Washtenaw
County, have; these counties have the
capability to produce and connect with
the global marketplace. Washtenaw
County is highly involved with
international business, and various
characteristics of the area make
Washtenaw’s international economic
impact even stronger. The success of
Washtenaw County is attributed to its
educated workforce, proximity to major
transportation centers, and its strong
business community.
This study attempts to gage Washtenaw
County’s current international
economic impact and predict future
trends in international business that
will impact the county. The study
focuses on both exports and education
via local institutions. This report
does not account for international
service from the county because of the
difficulty in tracking such
transactions. The study also does not
attempt to gage the impact of foreign
subsidiaries or franchises abroad.
Washtenaw County has been faced with
many economic challenges in regards to
its exports. The current slowdown in
the domestic economy, especially in
the manufacturing industry, and
current political events have
challenged the ability for Washtenaw
products to be exported, and
international students to enter the
United States. Washtenaw County seems
to be weathering these challenges well
however, and its emphasis of
technology rich products and its
strong education institutions have let
the county continue to benefit from
the international perspective. Local
firms and educational institutions
that are flexible, versatile, and able
to leverage past export experience
across a range of markets are likely
to succeed in the international
marketplace.
Washtenaw County Overview
Located
40 miles outside of Detroit, Michigan
and covering 710 square miles,
Washtenaw County is the sixth largest
county in Michigan. As of July 2003,
the U.S. Census Bureau estimates that
the population of Washtenaw County
totals 338,562 and the county’s
largest city, Ann Arbor, has an
estimated population of 114,498.[1]
From 1990 to 2000 the county grew
14.1% in population size. More than
half of Washtenaw County’s total
population lives within the City of
Ann Arbor and Ypsilanti Township.
Nearly 70% of the population lives
within four jurisdictions including
the City of Ann Arbor, the City of
Ypsilanti, Ypsilanti Township, and
Pittsfield Township.
As of 2002, Washtenaw County has a
civilian labor force of 176,217 with
167,647 people currently employed.
Washtenaw County’s 2002 unemployment
rate, 4.9%, is considerably lower than
that of Michigan’s, which is 8.7%.
According to the 2000 Metropolitan
Area Exports Study, U.S. Department of
Commerce, Ann Arbor is the 4th largest
exporting area in Michigan and within
the top 100 in the United States with
the export value totaling over $1.746
billion in 1999.[2]
According to the U.S. Census
Bureau’s most recent and available
study in 1997, there are a total of
555 manufacturers and/or software
publishers in Washtenaw County.[3] As
of 2004, there are about 202 known
exporting firms in Ann Arbor, followed
by 24 in Dexter, and 16 in Ypsilanti.
Saline hosts 18 exporting firms, and
Chelsea has a total of 6.[4] Part of
Washtenaw County’s high level of
exporting comes from the unique
pull-through effect of the large
automotive presence in the area.
The Ypsilanti U.S. Export Assistance
Center wishes to recognize the efforts
of Washtenaw County exporters. The
Presidents "E" Award was
created in December of 1961 by
Executive Order, to afford suitable
recognition to persons, firms, or
organizations which contribute
significantly in the effort to
increase United States exports. The
Presidents "E Star" Award,
which began in August 1969 by the
Secretary of Commerce, affords
continuing recognition of noteworthy
promotion efforts. There have been
several Washtenaw County firms who
have received one of both of these
awards. Mechanical Dynamics (currently
MSC software) has received both The
Presidents "E" Award and The
Presidents "E Star" Award,
as well as Pahl Sciences (now Gelman),
Terumo Cardiovascular Systems
(previously Sarns), and Sycor
(purchased by Nortel Networks). Firms
awarded The Presidents "E"
Award include American Broach and
Machine Company, Whatman (previously
Arbor Technologies / out of business),
and Buhr Machine Tool Company (out of
business).
Export Markets and Industries
The top five Washtenaw County
export sectors are computer software,
computer hardware, machine tools,
laboratory equipment, and medical
equipment. According to the Ypsilanti
U.S. Export Assistance Center,
Department of Commerce database, computer
software has the largest number of
exporters by far with a total of 98
firms, computer
hardware comes in second with 33
exporting firms, the medical
equipment sector hosts 23 firms
exporting in the county followed by machine
tools with 15 firms, and laboratory
equipment with a total of 15
firms. More than 70% of the exporters
are technology related.
The top export markets for Washtenaw
County differ slightly than that of
the export markets for the U.S. and
Michigan. Exports from the U.S. and
Michigan go overwhelmingly to Canada,
Mexico, Japan, and other
technologically rich countries of the
European Union. While this holds true
for Washtenaw County, other less
traditional countries are involved as
well, including Australia, and China.
The reason for this difference in
export markets is the high level of
computer technology products from
Washtenaw County, particularly from
Ann Arbor.
Canada
The
bilateral relationship between the
United States and Canada is the
largest economic relationship that has
ever existed between two nations.[5]
In 2002, two-way trade in goods and
services between the United States and
Canada amounted to US$432 billion, or
over $1 billion a day. In fields
ranging from environmental cooperation
to free trade, the two countries have
set the standard by which many other
countries measure their own progress.
In 2003, over 85% of Canadian exports
came to the United States and over 72%
of Canadian imports came from the
United States. In 2003, U.S. exports
into Canada (goods and services)
totaled approximately $195.3 billion,
up from $188 billion in 2002. On a
local level, Michigan leads all states
in exports to Canada, totaling over
$27 billion in 2003; Michigan is
Canada’s 2nd largest trading
partner, next to the United States.
Further, more than 8% of U.S. exports
to Canada come from Michigan.[6]
Washtenaw County exports find a
welcome home in Canada. Washtenaw
County’s number one industry,
computer software, and number two
industry, computer hardware, rank
number three and five respectively for
most potential in exporting to Canada;
U.S. companies are the dominant
suppliers of computer software to
Canada. In 2003, the U.S. exported to
Canada approximately $3.1 billion in
computer software and approximately
$3.4 billion in computer hardware.[7]
Medical equipment, Washtenaw
County’s number three industry also
has great possibilities, ranking
number 11 in export potential to
Canada. In 2003, the U.S. exported
approximately $1.3 billion in medical
equipment to Canada.[8] Washtenaw
County and U.S. exports are slated to
have continued success in Canada due
to the decrease in tariffs thanks to
NAFTA, the increasing openness to
foreign investment, deep cultural and
historical ties, strong awareness of
business and technological
developments in the U.S., and general
geographic proximity.
Mexico
The
relationship between the United States
and Mexico is of the utmost importance
for both countries. A mixture of
mutual interests, shared problems,
economic disparities, a 2,000 mile
border, and cultural relations shape
the relationship between the U.S. and
Mexico.[9] The Mexican economy, after
facing a recession, has shown positive
growth in the past 2 years and
Mexico’s recovery will continue to
be inextricably linked to U.S.
economic performance. In 2002, the
United States accounted for $143,059
million, or 88%, of Mexico’s exports
and provided $106,660 million, or 63%,
of Mexico’s imports.[10] Mexico is
now the second most important U.S.
trading partner after Canada and U.S.
exports to Mexico are greater than
U.S. exports to the rest of Latin
America combined. Due to NAFTA and the
fact the Mexico remains committed to
the path of economic integration,
Mexico is increasingly the destination
for Washtenaw County exports.
Mexico’s characteristics combined
with a growing demand for computer
software and other technology-based
products suggest a continuing market
for the county. Mexico is the number
two export market for both U.S
computer hardware and software. In
2003, U.S. computer hardware exports
to Mexico is estimated at $2.5
billion. In 2000, U.S. exports of
computer software totaled $4.6
billion.[11]
China
China’s
accession to the World Trade
Organization (WTO) in 2001 marked a
new direction for China’s economy.
With its new membership and
integration into the world economy,
China is slowly transitioning from a
planned economy to a market based
economy. After China’s entrance into
the WTO, American exports grew 15% in
2002 and since 1990, U.S. exports to
China grow approximately 12% annually.
In 2002, China imported $27 billion
from the U.S., or 3.3% of total U.S.
exports. China is America’s sixth
largest export market.[12]
Although the Chinese market is one of
great potential, it remains
medium-sized and unpredictable. China
lacks both transparency and a
consistent body of laws and
regulations. China’s membership in
the WTO will hopefully continue to
help open Chinese markets to foreign
firms, lower tariffs, and provide for
stronger protection of intellectually
property rights. Unfortunately, many
Chinese firms have remained relatively
small, under-capitalized, and are
poorly managed. Furthermore, with a
population of $1.3 billion and a GDP
of USD $1.24 trillion, there is little
disposable income for Chinese
citizens. Pockets of economic success
have started to grow in China,
however, and with China’s
participation in the WTO, American
companies will have growing access to
Chinese markets.[13]
Washtenaw County has and will continue
to benefit from the Chinese market
especially with China’s entrance
into the WTO and successful bid for
the 2008 Olympics. Computer software
is the number three leading Chinese
sectors for U.S. exports, coinciding
nicely with Washtenaw County’s
number one export industry. In 2002,
China imported $195 million in U.S.
computer software. U.S. computer
software exporters will also be able
to gain from software tariffs that
were reduced to zero in 2003. China
has also issued a number of policies
ranging from export incentives to
value-added tax rebates and financial
assistance to small businesses, as
well as laws addressing intellectual
property rights protection.[14] Piracy
will continue to be an issue for U.S.
companies in China.
Australia
Australia
finished the last decade as the
world’s second fastest growing
developed economy averaging a growth
of 4% a year. American company names
are commonplace in the Australian
market, and U.S. companies are
Australia’s largest source of
investment. Total trade between the
U.S. and Australia totaled $47 billion
in 2002 and Australia is one of
Washtenaw County’s top export
destinations.[15] American companies
are drawn to the Australian market
because of its familiar institutions,
quality infrastructure, stable legal
and political system, common language,
excellent communications and
transportation infrastructure, high
living standard, and sophisticated
financial system. Because Australia is
quick to adapt to high-tech products
and services and extensively uses the
Internet, Australia is a prime target
for Washtenaw County exports. Computer
software, computer hardware, and
medical equipment are number two,
three, and four respectively for
leading sectors in Australia for U.S.
exports and investment. In 2003, the
U.S. exported to Australia an
estimated $3 billion in computer
hardware, $2.2 billion in computer
software, and $547 million in medical
equipment.[16] The Australian software
market has grown at approximately
eight percent over the last two years.
Above all, American companies will
always find Australia a welcoming and
attractive place to do business.
Barriers are far and few, especially
with the signing of the Australia-
U.S. Free Trade Agreement on May 18,
2004.[17]
France
France
is the United States’ eighth largest
trading partner as well as one of
Washtenaw County’s top export
destinations.[18] The impressive
recent growth and continued expected
expansion can be attributed to
France’s membership of the G-8, The
European Union, The World Trade
Organization and the OECD. Despite
political differences, especially with
the Iraq War in 2003, France and the
U.S. are long-standing trade allies.
Currently, France has the third
largest Information Technology (IT)
market in Western Europe, after
Germany and the United Kingdom, and it
was valued at $48.2 billion in
2002.[19] France is therefore an area
of interest for Washtenaw County
exports. Computer software is the
number two "best prospect"
for U.S. business in France. France is
the number two destination for
software exports in Washtenaw County
and there are 27 firms in the county
exporting to France. U.S. computer
software exports to France totaled
$4.2 billion in 2002.[20] Computer
hardware is the number six “best
prospect” for U.S. exports in
France. Computer expenditures in
France significantly slowed down in
2002 and it is attributed to the burst
of the Internet bubble, followed by a
recession. U.S. hardware producers
should still be optimistic however, as
total U.S. exports to France was $1.9
billion in 2002, and is expected to be
$2.365 billion in 2003.[21] Medical
equipment and laboratory equipment are
ranked 9th and 10th for "best
prospects" in France, which are
the number 3 and 5 export sectors in
Washtenaw County, respectively. The
forecast for the scientific laboratory
equipment remains positive; total U.S.
laboratory equipment exports to France
was $937 million in 2002 and is
expected to be $1.171 billion in
2003.[22] The medical equipment sector
should also expect similar growth, due
to population growth and longer life
expectancy in France. The medical
equipment sector of France is highly
dependent upon imports from the U.S.,
especially with a social security
system that covers the majority of the
medical expenses for the French
population. Total U.S. medical
equipment exports to France was $812
million in 2002, and is expected to be
$852 million in 2003.[23]
Future and Current
Trends in Local Exports - The Survey
Firms
in Washtenaw County who are known
international exporters were asked to
participate in an International
Economic Impact Study developed by the
Ypsilanti U.S. Export Assistance
Center, U.S. Department of Commerce.
The sampled firms were asked to
respond to a series of questions
pertaining to international business.
The top five industries responsible
for international trade in the county
include Computer Software, Computer
Hardware, Medical Equipment, Machine
Tools, and Lab Equipment, and were
therefore the sampled industries.
Firms were first asked to
respond to the impact that
international trade has on their
businesses on a 5-point sliding scale:
no impact, little impact, some impact,
strong impact, and very strong impact.
The firms generally responded that
international sales have some sort of
impact on their business. The
responding firms reported anywhere
from 1-66% of their business comes
from international sales. The most
frequent responses were between 25%
and 45%.
The firms were then asked to
respond to the impact of the following
events on their business’s
international trade:
- September the 11th
- Afghanistan War
- Iraq War
- Current events in the Middle
East
- Fluctuation of national security
levels
The responses are as follows:
- September the 11th: Firms
responded heavily with some
impact.
- Afghanistan War: Most firms
responded with little or no
impact.
- Iraq War: Most firms responded
equally with some, little or no
impact.
- Current events in the Middle
East: Firms responded equally with
some, little, or no impact.
- Fluctuation of national security
levels: Firms responded strongly
with some, little, or no impact.
The firms generally commented that
current economic and political
conditions do not have a direct effect
on their business, but they do have an
indirect effect. The firms experienced
a slowdown of shipments due to extra
paperwork, a decrease in potential
commercial contracts, additional costs
of security charges, increased
scrutiny of export licenses, and
reworking of packaging for shipping.
Only a very small percent of the
responding firms have experienced
business due to sales from the
rebuilding of Iraq or the Iraq War.
The
firms were asked if the news of
potential threats to American
interests abroad has influenced or
inhibited international business
travel by their firms (trade show
attendance, meetings, etc.).
The surveyed firms mostly responded
that the threats have not affected
their business travel, although a
couple did respond in the affirmative.
One firm experienced difficulty
getting visas for their technical
employees to travel to Brazil.
The surveyed firms were then asked
to assess their outlook for
international business.
The survey asked, “How do you
feel about your company’s potential
for international business in the
future?” On a 5-point scale
ranging from very pessimistic to very
optimistic, the most frequent response
was somewhat optimistic, with very
optimistic coming in second. The
survey also asked, “How do you
feel about your company’s future
success for exporting to new
markets?” On the same
5-point scale, the firms’ most
frequent response again was somewhat
optimistic, with very optimistic
coming in second.
The following information was
gathered from a series of questions
about international business
activities:
- 17% of the surveyed companies
exported to new markets in the
past year. The specific countries
are as follows: Brazil, Greece,
China, Poland, France, Sweden,
Taiwan, and Singapore.
- 17 % of the surveyed companies
exported to new distributors or
channels of distribution in the
past year. These new channels
include: Brazil, Thailand,
Ireland, China, South Korea,
Britain, France, Sweden, Taiwan,
and Singapore.
- 35 % of the firms are planning
on entering a new international
market in 2004. These countries
include: Chile, Argentina,
Vietnam, China, South Korea,
Singapore, Malaysia, India,
Australia, and Brazil.
- 17% of the firms have an
e-commerce enabled website but
only about 2% of sales are done
via the Internet for the
e-commerce enabled firms. However,
one firm reported 60% of their
business is done online.
- The responding firms,
approximately 5% of the known
exporters in Washtenaw County,
employ an estimated 753 people
whose jobs are directly related to
exporting.
- 17% of the firms have
experienced difficulty in
obtaining visas for overseas
visitors of the company to visit
the U.S. Those firms that
experienced visa difficulties
reported 21 separate issues.
- The estimated total number of
days that overseas guests visited
the surveyed businesses was 419
days. With an estimated travel
expense of $150 per day for
Washtenaw County, the
international visitors to the
surveyed firms brought in
approximately $62,850, alone.[24]
- The firms were then asked a
series of questions about the
United States’ international
trade policy. On a 5-point scale
ranging from great decline to
great increase, the firms were
asked, “Since the signing of
NAFTA in 1992, what changes have
you seen in your export sales?”
The most frequent answer was no
change, with some increase filling
in the rest of the responses.
- In response to supporting
additional Free Trade Agreements
such as FTAA (Free Trade Area of
the Americas) or CAFTA (Central
American Free Trade Agreement),
17% of the firms supported these
additions.
A
weak U.S. dollar is expected to have a
positive impact on exports. While U.S.
consumers feel the negative pains of a
weak U.S. dollar, goods and services
are less expensive for foreign
consumers and businesses making U.S.
products more attractive.
Additionally, a large number of the
Washtenaw County’s exports are
technology related. Due to the
world’s growing dependence upon
technology, specifically computer
software and hardware, demand for
Washtenaw County’s products should
remain strong.
While there are a limited number of
statistics to track the effect of
dollar value on exports the Institute
for Supply Management (formerly the
National Association of Purchasing
Management), the largest supply
management association in the world,
does provide economic outlooks for
both the manufacturing and
non-manufacturing sectors. In 2004,
purchasing and supply executives
reported to the ISM that
non-manufacturing business activity
continued to increase at a steady but
slow rate over the past year. Within
the non-manufacturing sectors there
was “continued positive business
conditions but with continued concern
about inflationary pressures.”[25]
ISM also reports that in 2004, New
Export Orders for non-manufacturing
products are increasing.[26] Further,
according to the Michigan
Manufacturers Association (MMA),
industrial machinery and computers
account for 20.7% of Michigan’s
exports, a positive fact for Washtenaw
County.[27]
In terms of Michigan’s industries’
contribution towards state growth, the
State of Michigan has posted positive
numbers due to both the manufacturing
and non-manufacturing sectors. From
1992 to 2000, the average real GSP
(Gross State Product) growth rate for
Michigan was 3.8%, the average
manufacturing real growth rate was
4.7%, and the average real GSP growth
excluding manufacturing was 3.1%.
Manufacturing’s contribution to real
GSP growth during this time period was
32.1%.[28]
Economic outlooks continue to indicate
a strong future for Washtenaw County
exports, especially with the
assumption that the computer
technology industry will be able to
weather a fluctuating domestic and
world economy. With its main exporting
sectors in the computer and
medical/lab equipment industries,
Washtenaw County exporters will look
towards new developing markets for
international sales as well as
strengthening ties to existing
developed markets. Michigan and the
United States have benefited greatly
from Washtenaw County’s export
success and strength in computer and
equipment sales.
Educational Institutions
Education as a Reverse Export
Although
focusing on traditional exports, such
as computer software, when assessing
Washtenaw County’s international
economic impact is standard,
educational institutions also
contribute to the county’s global
influence and local economy. The U.S.
Department of Commerce’s
International Trade Administration
ranks international education as the
United States fifth largest service
sector export bringing in over $12
billion to the U.S. economy. Michigan
ranks number eight in international
students hosting 22,873 students for
the 2002/3 school year and they added
an estimated $430.8 million to
Michigan’s economy.[29] Asian
students comprise 51% of international
students studying in the U.S. and the
top countries of origin are India,
China, and South Korea.[30]
Universities and colleges in Washtenaw
County bring in a considerable amount
of economic revenue through
international students, which in turn
benefits businesses that would not
normally profit from international
sales. Industries such as retail
trade, real estate, accommodation and
food services, entertainment, and
recreation all profit from this unique
form of exporting.
Overview of International Students
in Washtenaw County
In Washtenaw County there are a
total of six educational institutions
with international students. Eastern
Michigan University and the University
of Michigan are the two public
universities. There are three small,
private institutions that include Ave
Maria, Cleary College and Concordia
College, and one community college,
Washtenaw County Community College.
According to the 2004 survey conducted
by the Ypsilanti U.S. Export
Assistance Center and the 2003 Open
Doors Report, the annual report on
international education published by
the Institute of International
Education, Washtenaw County had a
total of 7,229 international
undergraduate and graduate students
for the 2002/2003 school year. The
University of Michigan had the most
international students with a count of
4,601. Washtenaw County Community
College came in second with an
international student population of
1,370. Eastern Michigan was not far
behind with 1,214 students. Concordia
College, Cleary College and Ave Maria
had a combined population of 44
international students. As of 2003,
the University of Michigan had the
sixth largest enrollment of
international students in the
nation.[31]
The total money spent by international
students (including tuition, books,
and living expenses) at all
educational institutions in Washtenaw
County accounts for an estimated
$159,730,300 for the 2002/2003 school
year. In Open Doors’ financial
calculations, financial support that
the U.S. gives to international
students is taken into account, an
important notation that if
disregarded, could seriously inflate
the net contribution to the U.S.
economy. International students in
Michigan received financial support
from the U.S. for almost 1/3 of their
school and living expenses.[32] Open
Doors also takes into account the
living expenses of international
students’ dependents. 14% of
international students in Michigan
were married with 85% of the spouses
living in the U.S. for the 2002/2003
school year.[33] Both Ave Maria and
Washtenaw Community College did not
report their international student
statistics to be included in the Open
Doors report, and estimates were
therefore made by the individual
institutions’ estimates.
The
average cost of one-year total spent
at the University of Michigan was
estimated at $38,286 per international
student for the 2004/2005 school year,
making it the most expensive
institution in the county. Open Doors
reports that the estimated total
contribution by University of Michigan
international students was
$117,522,700. Eastern Michigan
University comes in second with a
total of $27,725,900. Concordia and
Cleary contribute an estimated
$103,500 and $65,700 respectively to
Washtenaw County’s economy. Finally,
Ave Maria and Washtenaw Community
College’s estimated contributions
total $612,500 and $13,700,000, not
taking into account U.S. support and
dependent living expenses. While the
bulk of that money goes directly to
the educational institutions in the
form of tuition, an average of 40%
goes into the local economy.[34]
The majority of the international
students attending educational
institutions in Washtenaw County come
from India, with an estimated 832
students, and China with an estimated
753 students. There are an
overwhelming number of students coming
from Asian countries, which coincides
with the statistic that 51% of
international students in the U.S.
were Asian for the 2002/3 school year.
The top six most popular countries of
origin for international students in
Washtenaw County include China, India,
Korea, Taiwan, Canada, and Japan.[35]
The top countries of origin for
international students in Washtenaw
County correspond with the top
countries of origin for the entire
U.S.
Significance of International
Students: Educational Export Economic
Impact
The economic impact of
international students is significant
in Washtenaw County because it
connects businesses that would not
normally have international
perspective to the global economy.
International sales can be difficult
if not impossible for small retailers
and service providers. Yet, the
substantial number of international
students enrolled in Washtenaw County
educational institutions provides an
opportunity for increased business
through existing sales channels.
Additionally, most money coming from
international students into the county
comes from offshore, which means the
money spent was not generated inside
of Washtenaw County.
The large number of international
students also has a positive effect on
Washtenaw County employment. The U.S.
Department of Commerce estimates that
every $35,000 worth of exports creates
one job. Since the University of
Michigan is the county’s largest
employer with over 25,000 employees,
it is likely that a number of jobs in
the educational field are supported
directly by international students.
This number is difficult to pinpoint
however, due to international staff
working in a variety of departments
and that some staff devotes only part
of their time to international
students. While it is difficult to
estimate the impact of international
students’ additional expenses
outside of tuition, the high level of
total economic impact suggests
international students support a
number of workers in fields that
conventionally do not benefit from
exporting.
Future Trends in International
Student Enrollment and Educational
Exporting
- According to Open Doors, after 5
years of steady growth, the number
of international students in the
U.S. grew only by .06% in 2002-03
over the previous year totaling
586,323 students.[36] Similar
trends occurred in the State of
Michigan and enrollment was
actually down less than one
percent bringing the number of
international students in Michigan
to 22,873, for the 2002-03 school
year.[37]
For
more than 50 years, U.S.
educational institutions have been
required to maintain data about
their foreign students and
exchange visitors. Government
records of the data was previously
inefficient and paper driven. Due
to heightened security in the
U.S., however, Congress mandated
that by August 1, 2003, all
foreign students and exchange
visitors be entered into a central
and automated system called the
Student and Exchange Visitor
Information System (SEVIS). Under
SEVIS, schools are required to
submit basic information about
their international students such
as address, degree program, and
expected date of graduation.[38]
Another registration program that
affects international students in
Michigan is the National Security
Entry-Exit Registration System (NSEERS).
The Department of Homeland
Security describes NSEERS as
“…a national registry for
temporary foreign visitors
(non-immigrant aliens) arriving
from certain countries, or who
meet a combination of
intelligence-based criteria, and
are identified as presenting an
elevated national security
concern.” Students from the
following countries are subjected
to special registration,
fingerprinting & photographing
upon entering the U.S.:
Afghanistan, Algeria, Bahrain,
Bangladesh, Egypt, Eritrea,
Indonesia, Iran, Iraq, Jordan,
Kuwait, Libya, Lebanon, Morocco,
North Korea, Oman, Pakistan,
Qatar, Somalia, Saudi Arabia,
Sudan, Syria, Tunisia, United Arab
Emirates, and Yemen.[39]
As expected, enrollment numbers
from some of the aforementioned
countries have notably decreased.
Enrollment from the Middle East
was down 10%, Indonesia down 10%,
Thailand down 15%, and Malaysia
down 11%. Of the top 20 sending
countries, 13 experienced a
decrease in sending numbers.[40]
These decreases however have made
way for some major sending
countries to increase their
enrollment numbers in U.S.
educational institutions. India,
China, and South Korea, the top
three sending countries saw
increased enrollment numbers of
12%, 2%, and 5% respectively.
Washtenaw County has seen little
change in international student
enrollment, mirroring the U.S. and
Michigan. The county also has
similar numbers in regards to
international student country of
origin, with an overwhelming
number coming from Asian
countries.[41]
The impact of SEVIS and NSEERS may
present itself in the future;
prospective international students
may choose not to apply to
educational institutions in the
United States due to application
difficulty and entrance
discomfort. Respondents from the
educational institutions have
found some of their students to
oppose these systems as they feel
their anonymity and rights are
being infringed upon. According to
the respondents, international
students have also expressed
discomfort at the borders when
entering the United States,
specifically when re-entering
following a vacation or home
visit. These policies could
therefore create a financial
impact on the educational
institutions of the county. The
respondents of the survey however,
noted that in most cases, domestic
students would simply fill the
spots that international students
once held.
Despite any effect from new visa
policies, Washtenaw County schools
will continue to advocate for
their institution as a higher
learning opportunity for
international students. Many of
the universities and colleges
belong to or are planning on
joining educational consortiums
such as NAFSA: Association of
International Educators to promote
their institution abroad. Further,
many of the schools have
partnerships with education
institutions abroad to exchange
students.
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Footnotes
- [1] Population Division. U.S.
Census Bureau. http://eire.census.gov/popest/data/cities/tables/SUB-EST2003-01.xls
.
[2] Trade Promotion Authority.
International Trade
Administration. U.S. Department of
Commerce. http://www.tpa.gov/statetpa/MItpa.pdf
.
[3] 1997 Economic Census. U.S.
Census Bureau.
[4] Ypsilanti U.S. Export
Assistance Center. U.S. Department
of Commerce.
[5] 2004 Canada Country Commercial
Guide. U.S. Foreign Commercial
Service and U.S. Department of
State.
[6] Strategis Trade Data Online. http://strategis.ic.gc.ca
.
[7] 2004 Canada Country Commercial
Guide. U.S. & Foreign
Commercial Service and U.S.
Department of State.
[8] Ibid.
[9] 2004 Mexico Country Commercial
Guide. U.S. & Foreign
Commercial Service and U.S.
Department of State.
[10] Ibid.
[11] Eastern Michigan University
Information and Communication
Technology & U.S. Export
Assistance Center. http://www.emich.edu/ict_usa/INTERNATIONAL.htm
.
[12] 2004 China Country Commercial
Guide. U.S. & Foreign
Commercial Service and U.S.
Department of State.
[13] Ibid.
[14] Ibid.
[15] 2004 Australia Country
Commercial Guide. U.S. &
Foreign Commercial Service and
U.S. Department of State.
[16] Ibid.
[17] Ibid.
[18] 2004 France Country
Commercial Guide. U.S. &
Foreign Commercial Service and
U.S. Department of State.
[19] Ibid.
[20] U.S. Department of Commerce
and U.S. Export Assistance Center
[21] 2004 France Country
Commercial Guide. U.S. &
Foreign Commercial Service and
U.S. Department of State.
[22] Ibid.
[23] Ibid.
[24] U.S. General Services
Administration.
[25] Institute for Supply
Management. http://www.ism.ws
.
[26] Ibid.
[27] Michigan Manufacturers
Association. http://www.mma-net.org
.
[28] National Association of
Manufacturers. http://www.nam.org
.
[29] 2003 Open Doors Report.
Institute of International
Education.
[30] Ibid.
[31] Ibid.
[32] Ibid.
[33] Ibid.
[34] Ibid.
[35] 2004 Ypsilanti U.S. Export
Assistance Center Survey.
[36] 2003 Open Doors Report.
Institute of International
Education.
[37] Ibid.
[38] U.S. Department of Homeland
Security. U.S. Immigrations and
Customs Enforcement.
[39] Ibid.
[40] 2003 Open Doors Report.
Institute of International
Education.
[41] Ibid.
Date
Updated: March 20, 2007
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