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This study analyzes the literature on the internationalization of higher education (IHE). It explores how previous scholars have defined the concept of “internationalization” in higher education in recent decades. Focusing on the context of US higher education, this study examines how the initial meaning of IHE, which was to be cooperative and integrative, has been shifted toward more commercialized and competitive, embedded in neoliberalism. By examining the US historical trends and the features of the higher education system, it assesses the ongoing challenges facing IHE in US higher education that has not fully achieved the initial value of cooperation and integration in IHE. This study further provides recommendations for the future direction of IHE.