Today it is very common for software systems to be built by teams located in more than one country. For example, a project team may be located in the US while the team lead resides in Sweden. How then should students be trained for this kind of work? Senior design or capstone projects offer students real-world hands-on experience but rarely while working internationally. One reason is that most instructors do not have international business contacts that allow them to find project sponsors in other countries. Another reason is the fear of having to invest a huge amount of time managing an international project. In this paper we present the general concepts related to "International Capstone Project Exchanges", the basic model behind the exchanges (student teams are led by an industry sponsor residing in a different country) and several alternate models that have been used in practice. We will give examples from projects in the US, Germany, Sweden, Australia, and Colombia. We have extended the model beyond software projects to include engineering projects as well as marketing, and journalism. We conclude with a description of an International Capstone Project Exchange website that we have developed to aid any university in establishing their own international project exchange.