<p>International prestige of a university is based primarily on its research discoveries in the sciences and technology. (That is what the rest of the world admire.) This is why a school like Berkeley is so highly regarded. A non-research, liberal arts college has little recognition on the international stage, no matter how selective its admission process is.</p>
<p>In the U.S. it is easy to be shortsighted and be brainwashed by the media (e.g. USNWR), who tend to pander to the rich and powerful. Thus the private schools are favored. Coupled that with the general indifference of math and science by the masses, and the country has a skewed view of what prestige is. Unfortunately, the U.S. population tend to admire the wealthy, the powerful, the beautiful and charismatic, not academic or scientific achievements per se.</p>