Abstract
The world of higher education is changing and the world in which higher education plays a significant role is changing. The international dimension of higher education is becoming increasingly important, complex, and confusing. It is therefore timely to reexamine and update the conceptual frameworks underpinning the notion of inter-nationalization in light of today’s changes and challenges. The purpose of this article is to study internationalization at both the institutional and national/sector level. Both levels are important. The national/sector level has an important influence on the international dimension through policy, funding, programs, and regulatory frameworks. Yet it is usually at the institutional level that the real process of internationalization is taking place. This article analyses the meaning, definition, rationales, and approaches of internationalization using a bottom-up (institutional) approach and a top-down (national/sector) approach and examines the dynamic relationship between these two levels. Key policy issues and questions for the future direction of internationalization are identified.

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