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The University arose around mutual aid societies of foreign students called "nations" (as they were grouped by nationality) for protection against city laws which imposed collective punishment on foreigners for the crimes and debts of their countrymen. These students then hired scholars from the city to teach them. In time the various "nations" decided to form a larger association, or universitas—thus, the university. The university grew to have a strong position of collective bargaining with the city, since by then it derived significant revenue through visiting foreign students, who would depart if they were not well treated.

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