From 1990 to 2003, Australia’s share of the global market in cross-border degrees grew from 1% to 9%. Full fee-paying foreign students now constitute one quarter of enrolments, and education is Australia’s third largest services export. Positioned as an Anglo-American system on the edge of Asia, Australia has differentiated itself from the United States and United Kingdom on price, location, safety, and climate, not academic content. The supply side keys to growth are deregulation and prolonged reductions in the public funding of universities. However, the Shanghai Jiao Tong University survey of research performance finds that Australia is less strong in research than cross-border degrees. Australia’s policy may have negative implications for its longer-term global standing and limit the range of position-taking strategies available to its universities. These themes are explored in the context of the emerging worldwide market and Australian policy changes that have enhanced institutional stratification.
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