The research study examines the relationship of international students to changing U.S. political economy. The research attempts to move international students from the periphery to the center of understanding the changing U.S. political economy in the twenty-first century. I argue that international students play an important role in building a U.S. "national civilization" at home and abroad. Using a historical case study method, I demonstrate how international students contribute to U.S. national and international interests and explore the ways in which international students as social, cultural, economic and political capitals advance the goals of the state. International student exchange operates on the tacit principle of Western superiority and the transformation of developing nations according to models and policies of advanced nations, most particularly that of the U.S. International student mobility has enabled the United States to extend its hegemonic power overseas beyond military might and economic aid. International students become actors in advancing U.S. "national civilization." Given their potential as agents of change in their home countries, international students further U.S. foreign policy objectives by implementing U.S. economic models, promoting U.S.-style "democracy" and culture. With the rise of the neoliberal state, the promotion of free-market enterprise, and commodification of higher education, international students have become important human and economic capital. The United States economy benefits greatly from the supply of international students in the science and engineering fields. These students are the intellectual"braceros" advancing the U.S. knowledge economy and as skilled migrants fuel innovation and entrepreneurship. The state plays an important role in facilitating the migration of international students. However, in a post 9/11 world order, the state has exhibited a schizophrenic approach to the international student program by constructing international students as friends and foes. Given the contributions of international students and the conflicting position of the state, the United States must clearly define its relationship to international students and must re-examine its current immigration policies if it is to maintain its dominance in cross-border education, given increased competition for students by other major receiving nation states. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]