Globalization trends and innovations in the instructional technologies are widely believed to be creating new markets and forcing a revolution in higher education. Much of the rhetoric of globalists has presented a simplistic analysis of a paradigm shift in higher education markets and the way nations and institutions deliver educational services. This essay provides an analytical framework for understanding global influences on national higher education systems. It then identifies and discusses the countervailing forces to globalization that help to illuminate the complexities of the effects of globalization (including the General Agreement on Trade and Services) and new instructional technologies on the delivery and market for teaching and learning services. Globalization does offer substantial and potentially sweeping changes to national systems of higher education, but there is no uniform influence on nation-states or institutions. All globalization is in fact subject to local (or national and regional) influences. (Contains 4 figures.) [An earlier version of this article was published in Tjeldvoll A. and Zhou F. (ed.) (2004) "University Development and Globalization," Norwegian University of Science and Technology, No. 21.]