Based on a 1978 symposium sponsored by National Association for Foreign Student Affairs (NAFSA), information is presented on foreign students in the United States, the case of Saudi Arabian government-sponsored students in the U.S., the U.S. response to the needs of foreign students and their countries, and unresolved issues. The profile of foreign students studying in the United States covers where students come from, fields of study, levels of study, sources of financial support, and new dimensions of international exchange. For the Saudis, the three most popular fields of study are education, engineering, and business management. Difficulties regarding admission of Saudi students to U.S. institutions and the limited higher education opportunities in Saudi Arabia are addressed. The U.S. response is discussed in terms of the roles of the federal and state governments in supporting international educational exchange, the roles of institutions and faculty, teaching assistantships for foreign students, curriculum flexibility, and the case of the engineering curricula in the United States. Unresolved issues include accreditation practices as they relate to programs involving large numbers of foreign students, practical training opportunities for foreign students, problems ln reentry/transition to the home country, and the loss of human resources when foreign students do not return home. Recommendations, data on foreign students, and references are included. (SW)