According to Van der Wende (1999) globalisation is characterised by increasing competition and global division of labour, whilst internationalisation is characterised by cooperation between institutions. When one considers that higher education institutions are competing for foreign students, it is safe to assume that these institutions are clearly experiencing the effects of globalisation. Higher education institutions have probably never had to compete before, and the current environment would suggest that globalisation is not welcome in the sector, despite the fact that it cannot be avoided.
Internationalisation is regarded as a safe option as it compatible with the goals and values of the academic community (Van der Wende 1999), as higher education institutions want to share and develop new knowledge by participating in research projects. Globalisation erodes this base, as it will encourage higher education institutions to withhold knowledge and its transfer in the interests of maintaining a competitive advantage. Whilst this model will work well in business, the higher education sector is bound by policy agendas and government regulation which fund their existence (Van der Wende 1999).