In this thesis we develop an analytical framework for evaluating the benefits and costs of the presence of foreign students at a Canadian university; in particular the University of Manitoba. Using some theoretical tools such as: the theory of clubs and the export multiplier, combined with a survey of some 160 foreign students on campus, we arrived at a tentative conclusion that the benefits of a foreign student presence exceeds the costs. We examine two alternative frameworks for cost-benefit analysis: a strictly Canadian framework and an international framework. In the Canadian framework there is no significant difference between the present value of costs and benefits from foreign students. However, the international framework which includes the benefits to foreign students as well, shows a significant net benefit from the presence fo foreign students in Canada. Our analysis of the quantifiable and the non-quantifiable benefits from foreign students studying in Canada, reaches the conclusion that foreign students do not impose a burden on Canadian society and may well confer a net benefit.