Only twenty years ago, countries often saw student mobility as a way of reaching out to the world, hoping thereby to create elite international networks. Universities welcomed international students but rarely went out of their way to recruit them. Today, cross-border education is more often perceived as a lever for economic development. Between 1998 and 2004, the number of foreign students in the OECD area rose by 70% to reach 2.3 million students. Increased competition between countries and between institutions to attract foreign students and academics, as well as the emergence of new forms of cross-border education, represent a new context for policy. In addition, the benefits, particularly economic benefits arising from cross-border education, appear to have growing importance. This chapter looks at policies for the internationalisation of higher education, taking into account this new context and objectives.