TRANSNATIONAL BUSINESS OPERATIONS HAVE INCREASINGLY BECOME TARGETS OF TERRORIST ATTACKS BY LARGE, WELL-ORGANIZED, AND HIGHLY DISCIPLINED, GROUPS IN ORDER TO ACHIEVE POLITICAL ENDS. THE TRANSNATIONAL ENTERPRISE, AS A NATURAL ALLY OF POLITICAL STABILITY, AN EFFECTIVE MODE FOR ORGANIZING CAPITAL AND TECHNOLOGY, AND AN EXTENSION OF FOREIGN INTERESTS, HAS BECOME A SYMBOLIC TARGET. BECAUSE THE COSTS OF SUCH TERRORISM MAY FAR EXCEED THE PROFITS OF AN ENTERPRISE, THE INTERNATIONAL INVESTMENT CLIMATE AS A WHOLE SUFFERS, AND WITH IT, INTERNATIONAL COMMERCE. THUS, THE THREAT OF TERRORISM IS FORCING THE TRANSNATIONAL ENTERPRISE TO RETHINK TRADITIONAL APPROACHES TO SECURITY AND TO DEVELOP NEW FORMS OF COOPERATION WITH GOVERNMENTS. THE FIRST LINE OF DEFENSE AGAINST TERRORIST ATTACK LIES WITHIN THE ENTERPRISE ITSELF. THIS CONSISTS OF COMPREHENSIVE SECURITY PROGRAMMING, EXECUTIVE PROTECTION, LOW CORPORATE PROFILE, AND CONTINGENCY PLANNING. HOWEVER, SUCH STRATEGIES HAVE ONLY RELATIVE VALUE IN PREVENTING ATTACKS; THEY MAY CUT LOSSES ARISING FROM TERRORISM, BUT WILL RARELY WARD OFF AN ATTACK BY A DETERMINED GROUP. TRANSNATIONAL ENTERPRISES MUST BEGIN TO DEVELOP INTELLIGENCE NETWORKS, CRISIS MANAGEMENT PLANNING, AND PREVENTIVE SYSTEMS THAT DEAL MORE COMPREHENSIVELY WITH PROGRAMMING AMONG ENTERPRISES. THIS REQUIRES CLOSE WORKING RELATIONSHIPS BETWEEN ENTERPRISES AND GOVERNMENT INTELLIGENCE AGENCIES AND LAW ENFORCEMENT AUTHORITIES. RECOMMENDATIONS ARE PROVIDED REGARDING U.S. POLICY, RESEARCH, AND THE DEVELOPMENT OF A PRIVATE SECTOR RESOURCE CENTER. REFERENCE NOTES ARE PROVIDED. (KBL)