ABSTRACT
This chapter considers the regulation of transnational higher education by governments in the education-exporting countries in which the transnational institutions, and the qualifications they issue, are based. It argues that governments of exporting countries have three major concerns: they enact quality assurance regimes in order to ensure that overseas operations do not damage the nation's reputation abroad. The chapter examines the financial arrangements of institutions operating abroad to ensure that public funds are not being used for purposes for which they were not intended. It explores the growth of overseas provision by encouraging governments to adopt regulatory frameworks conducive to the expansion of transnational education. Transnational education has evolved in recent decades from a peripheral activity to a major aspect of cross-border higher education. The rewards and risks of transnational education are the obverse of each other: if financial gain is one of the rewards sought for by successful entrepreneurial activities of universities, financial loss is the flipside.
