Exchange Rate Havoc  

Posted by Dino Gane-Palmer né Ganesarajah in ,

Ever seen a grown man cry?

People talk about what an awful time it is to graduate from an MBA degree. For an international applicant, it is surely an awful time to start one too!

Firstly, the price of my MBA education has skyrocketed over 20%. This means a bigger amount to pay off and, in this credit crunch, a bigger headache.

Secondly, in many an MBA application it asks for your salary in US dollars, but does not ask you to state the exchange rate. Given the drastic exchange rate changes over the last few months, even people applying from the same country are going to give wildly differing accounts of what their salary is in US dollar terms. I wonder if the adcoms realize that they just won’t be able to compare applicants’ salaries!

Thirdly, what if the dollar strengthens further over the next two years? Will I be able to get a high enough paying job to pay off this headache? How long will the coming recession last? Will I be able to get a job? This has to one of the worse years to apply to business school.

It looks like the hey days are over.

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10 comments

Right on, Buddy! The increase has been in fact in ordeer of 25%. When I had started planning for my MBA, the conversion rate was 1 USD~40 INR. Today, it's almost touching 50!! :-o

But I don't think that you should pay attention to the salary figures. I don't think that the adcoms compare these to compare candidates... As I understand it, they use this to adjudge your career progress.. So a person who has seen his annual salary rise from 4000 USD to 10000 USD in two years must be seen in better light than somebody static at 12000.

So as long as you are uniform in conversion in ur apps, I don't think it shud be an issue..

27 October 2008 at 04:00

Right on, Buddy! The increase has been in fact in ordeer of 25%. When I had started planning for my MBA, the conversion rate was 1 USD~40 INR. Today, it's almost touching 50!! :-o

But I don't think that you should pay attention to the salary figures. I don't think that the adcoms compare these to compare candidates... As I understand it, they use this to adjudge your career progress.. So a person who has seen his annual salary rise from 4000 USD to 10000 USD in two years must be seen in better light than somebody static at 12000.

So as long as you are uniform in conversion in ur apps, I don't think it shud be an issue..

27 October 2008 at 04:00

We seem to be in the same boat. One good thing thats beginning to emerge from all this is that I hope to perform better in the interviews now - given the fact that the result (admit/deny) will hardly matter anymore if the situation doesn't improve!!

27 October 2008 at 07:02

We seem to be in the same boat. One good thing thats beginning to emerge from all this is that I hope to perform better in the interviews now - given the fact that the result (admit/deny) will hardly matter anymore if the situation doesn't improve!!

27 October 2008 at 07:02

Hey MissionMBA, TrystWithMBA... it's great to know that there are other people with similar concerns. But in reality, are international applicants going to not apply as a result?

Also, did anyone notice that Stanford ask how you funded your undergrad degree: loans, grants, parents, jobs etc... Yet another 'what do you need to know that for?!' question.

27 October 2008 at 18:07

Hey MissionMBA, TrystWithMBA... it's great to know that there are other people with similar concerns. But in reality, are international applicants going to not apply as a result?

Also, did anyone notice that Stanford ask how you funded your undergrad degree: loans, grants, parents, jobs etc... Yet another 'what do you need to know that for?!' question.

27 October 2008 at 18:07

Also I find that Chicago GSB asked for "whether your employer will be sponsoring your MBA?".
I found that question a little disconcerting considering the present economic situation.
If my employer is paying for my MBA, then i'm not a burden on the AdCom either for the loans or for the post-MBA recruitment. So doesn't it seem that the sponsored students will have a better chance of admission???

28 October 2008 at 21:24

Also I find that Chicago GSB asked for "whether your employer will be sponsoring your MBA?".
I found that question a little disconcerting considering the present economic situation.
If my employer is paying for my MBA, then i'm not a burden on the AdCom either for the loans or for the post-MBA recruitment. So doesn't it seem that the sponsored students will have a better chance of admission???

28 October 2008 at 21:24

I've got the impression myself that some schools seem use the sponsorship question to determine how highly your company regards you. Of course, if you are admitted, your company would regard you very, very highly. The truth is, it is the norm in some places and not in others.

BTW, I recently met someone who was sponsored, but decided not to go back to his previous employer. He was crying about how he had to pay back all the money they had given him, as well as not gotten any grants etc as a result...

28 October 2008 at 22:43

I've got the impression myself that some schools seem use the sponsorship question to determine how highly your company regards you. Of course, if you are admitted, your company would regard you very, very highly. The truth is, it is the norm in some places and not in others.

BTW, I recently met someone who was sponsored, but decided not to go back to his previous employer. He was crying about how he had to pay back all the money they had given him, as well as not gotten any grants etc as a result...

28 October 2008 at 22:43

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