Foreign study is a multifaceted phenomenon -its impact is felt on academic institutions in both the 'host' and 'sending' countries, on the economies of nations, and of course on the individuals involved. With more than one million students studying abroad, foreign study has assumed considerable importance in higher education planning. This article considers the many aspects of foreign study and discusses the interrelationships of these elements. The policies of the 'host' nations, for example, have an impact on higher education planning in the sending countries. The non-return of foreign students, traditionally referred to as the 'brain drain', is considerably more complex than was once thought since Third World graduates settled in the industrialized nations often retain contacts with their home countries and increasingly return after a period abroad. This article also considers the various 'push' and 'pull' factors which determine the constantly changing flow of foreign students.Higher education is increasingly international -and foreign students are among the most important and visible elements of this internationalism. There are well over one million students studying outside the borders of their countries-about a million of these are in OECD nations. The large majority of the world's foreign students are from the developing countries of the Third World but flow patterns are complex and subject to change (Zikopoulos 1989). Other elements of the internationalization of higher education are also of considerable importance -the domination of the world's research enterprise by a small number of major industrialized nations, the centralization of publication and data transmission networks, the widespread use of English as the world's major scientific language and others have implications for foreign study as well (Altbach 1987). In fact, foreign students are at the center of a complex network of international academic relationships. They are the human embodiments of a worldwide trend toward the internationalization of knowledge and research in an integrated world economy.This essay is concerned with several important aspects of the foreign student phenomenon -those relating to the flow of students from the Third World to the industrialized nations including the impact of foreign students on academic institutions and the impact of foreign study on the students as well as policies relating to these key questions. Its purpose is to reflect on some of the most important generalizations of the available research literature (Altbach, Kelly and Lulat 1985; Altbach and Wang 1989).