Earlier quoted context omitted.
> This is also what a lot of other countries do As an expat for the bigger part of my life I can't think of a country that would prioritize their own institutions when applying for a visa. Generally there's simply a category for advanced degree holders.
Canada's Express Entry system for skilled immigrants gives you more points if you attended college in Canada. Giving priority to people who have already integrated into the society makes perfect sense to me.
Just imagine a PhD (or even a Master's degree holder) from Europe, a leader in their field. With this system they are at a huge disadvantage and so are companies that would like to hire them.
As someone mentioned this system will just lead to straight to masters degrees. Those "body shop" outsourcing companies just need their candidates to attend any (does online count?) US-based masters degree and then business as usual.
Having a Masters from "some" university doesn't make anyone highly skilled.