Why is it called an exchange program?

Does that mean that my parents must host a foreign student?

In theory YES! An exchange is made between Rotary organizations here and abroad with our students going abroad and their students coming to Australia. A Rotary Club that sponsors students from its community to go abroad also hosts foreign students in exchange. Ideally, parents of outbound students will host a foreign exchange student for a part of the year and help the Rotary Club obtain host families that will be approved by the Club.