Question

How do changes in the value of the U.S. dollar affect foreign enrollment at U.S. colleges?

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Answer 1

Changes in US dollars could be of two types. One is appreciation of US dollar in terms of another currency. And another one is depreciation of dollar in terms of other cuurency.

When we say dollar appreciate with respect o/to soome other currency, let says euro, it means now less of dollars have to be paid in exchange of euros when compared to situation befre appreciation. Or it implies now more of euros will have to be give up to have same amount of dollars as before appreciation. In short dollars becomes dearer against euro.

On the other hand, when it depreciates, it becomes cheaper against the other currency. That is less of euros have to be exchanged to get same amount of dollars or more of dollars have to be give up to get same amount of euros as before.

Hence, if dollar apreciates, Foreign employees have to be pay more for US college fees, to which there will be less enrollment as it is a kind of real hike in fees for them. Conversely if dollar depreciates, foreigners have to give less of their currency to pay fee at US college that is in real terma fees has decreased. To which ennrolllment will get increased.

Thus, with appreciation of dollaar there will be less of enrollment and with depreciation of dollars there will be more of enrollment.