The Globalization of higher education can be linked to various internal and external changes in the international system. Externally, there have been changes in the labor market, which have resulted in calls for more knowledge and skilled workers, and workers with deeper understandings of languages, cultures and business methods all over the world. Education is becoming more invaluable to individuals. In today's environment, education provides individuals with a better chance of employment, which in turn leads to a better lifestyle, power and status. The modification of knowledge as intellectual property has occurred particularly with regard to connecting the intellectual work of universities with community, business, and government interests and priorities. While such a tendency is often welcomed by so-called applied disciplines, it causes tensions between the more profitable applied subjects of science and technology, and those of basic theoretical enquiry, particularly in arts and humanities. It also creates institutional winners and losers. This paper analyse the effect of globalization on education and also discusses about the impact of globalization on higher education, regulations, culture, allocation of operation funds etc.