Question

In: Economics

Choose an article published in the last two weeks in one of these three resources (Wall...

Choose an article published in the last two weeks in one of these three resources (Wall Street Journal, Business Week, Economist). Discuss how the article relates to one or more of the Ten Basic Principles of Economics: "People Face Trade-offs" is what we will use. please be no less then 2-3 paragraphs and I will rate it well

Solutions

Expert Solution

The article of the business week named as ' Helping Foreign students cover the high price of an MBA is clear example of trade off that students face when they enroll in top MBA programs of foreign universities. They have to bear a high price for their tuition and living expenses. Many of them end up taking loans by providing a collateral by financing their studies from their home country. However, some students could not find finance in their home country and end up taking huge loans at a high interest rate from the foreign country.

Companies like prodigy finance have introduced new financial products for such students have displayed a high earning potential in the recent years .These students have to face a high credit risk . Some students of countries like South Africa are not provided bank loans because of structural issues which is unfair and a big problem for them. Students have to face a trade off for getting educated from top business schools in two ways. First, they are treated as second class citizens for getting loans in foreign and second they have to bear a very high price in form of high interest rates.


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