CHAPTER 1 INTRODUCTION
1. 1. Background of Study
Prowess and progress of a country are seen from the economic development in the country. However, many people forget the role of education can also encourage the development in every country. Research has shown the quality of human resources in a country is an important factor that can accelerate economic growth and development of that country. Education is a very important thing which demands the attention to government and the entire society gets attention on both the government and society in the country. Without education, a country will never experience development. Education is one of the most powerful instruments for reducing poverty and inequality and lays a foundation for sustained economic growth. Education is the driving force which helps countries to properly integrate itself into the rest of the world.In the economic and technological globalization, driven by trading in service has increasingly become an important force affecting national economic development. The signing of the General Agreement on Trade in Services （GATS） has further accelerated the process of liberalization of international trade in service, and the momentum of trading in service has become stronger. According to the GATS negotiated in the Uruguay Round, trade in service refers to international trade in service, which is different from domestic trade in service.According to the United States department of agriculture, educational attainment of rural America reached a historic high in 2000, with nearly one in six rural adults holding a four years’college degree, and more than three in four completing high schools, it is not surprising that America is the most developed country in the world. Studies have shown that Singapore is a small country withtotal population in June 2015 is 5.54 million, which has a little population compared with Indonesia but Singapore is better and more advanced than Indonesia, as well as with other countries such as Japan and others. Singapore which according to studies, were not internationally recognized until recent years Singapore is now considered one of the countries that has successfully promoted itself in the international front and being representative of the ASEAN community.
1. 2. Literature Review
According the UNESCO definition, international students are students that have
left their country of origin and moved to another country for the purpose of study. In the economic literature, international students are often seen as a potential inflow of human capital for receiving country （Murat, 2014）。 Le （2010） and Park （2004） evidence that, under certain situation, international students may also generate benefits for the sending economy. From this perspective, the main aim of nvestigation is that of shedding light on the determinants of students’ choices of whether to study aboard, and if so, where to study, and the consequences of potential brains gain for the host county. Many international students also choose where to study based on where they hope to start their careers （Obst, 2013）。 Asia is one of the fastest growing destinations for international students, and foreign enrollment universities in Indonesia and South Korea have more than doubled since 2005 （Sheehy, 2013）。 Murat （2014） has shown that the international movement towards students can be an effective way of improving the economic exchanges of the countries involved.
1.2.1. Related to Education Service Trade
The signing of The GATS has further accelerated the process of liberalization of
nternational trade in service, and the momentum has become stronger. The classification of the International Educational Services Trade is based on the United Nations Center for Product Classification System and is identified as 12 basic services sectors, namely, commercial services, communications services, construction services, marketing services, education services, environmental services, financial services, health and social services, tourism and related services, culture, entertainment and sports services, transportation services and other services （Bin, 2004）。