THE STUDY WAS DONE BY THE CORPORATE POLICY DIVISION OF BUSINESS INTERNATIONAL. THE FIRST PART OF THE STUDY PRESENTS POLICY CHOICES THAT MUST BE ADDRESSED; ANALYZES THE SIX ESSENTIAL COMPONENTS OF THESE CHOICES; AND DESCRIBES HOW AND WHY COMPANIES IN THE U.S., CANADA, WESTERN EUROPE, AND JAPAN HAVE MADE THEIR POLICY DECISIONS. THE SECOND PART OF THE STUDY OFFERS PROFILES OF THE MAJOR TERRORIST ORGANIZATIONS WORLDWIDE THAT HAVE BUSINESS AS THEIR TARGET AND FORECASTS THE MOTIVES AND TACTICS OF THESE GROUPS FOR THE SHORT AND MEDIUM TERM. THE STUDY'S LAST PART LISTS AND DISCUSSES BRIEFLY THE SERVICES AVAILABLE TO ASSIST COMPANIES WITH THE PLANNING AND OPERATIONAL ASPECTS OF THE PROBLEM AND PRESENTS CORPORATE ASSESSMENTS OF TWO ORGANIZATIONS WITH WHICH MOST COMPANIES INTERVIEWED FOR THIS STUDY WERE FAMILIAR. STUDY METHODOLOGY INVOLVED CONSULTATION WITH THE BEST EXPERTS IN ALL FACETS OF THE PROBLEM AND INTERVIEWS WITH CLOSE TO 50 COMPANIES BASED IN NORTH AMERICA, EUROPE, AND JAPAN. THESE CAUTIONS FOR COMPANIES OVERSEAS RESULTED FROM THE STUDY: (1) COMPANIES THAT HAVE ADOPTED POLICIES AND TAKEN MEASURES TO PROTECT THEIR EMPLOYEES FROM TERRORIST STRIKES HAVE, IN THE PROCESS, ALSO PROTECTED THEIR CORPORATIONS FROM LEGAL ACTION BY EMPLOYEES WHO FEEL THAT THE COMPANY HAS NOT SHOWN DUE DILIGENCE IN ASSURING THEIR SAFETY AND (2) COMPANIES MUST REALIZE THAT PAYMENT OF RANSOM DOES NOT ALWAYS PREVENT THE EXECUTION OF THE KIDNAPPED VICTIM. TO BE PREPARED FOR THE POSSIBILITY OF KIDNAPPING OR OTHER TERRORISM, A COMPANY SHOULD HAVE A SOPHISTICATED SYSTEM INCORPORATING A SITUATION FILE FOR EACH COUNTRY IN WHICH THE COMPANY HAS OPERATIONS, A SET OF ACTION SCENARIOS, AND A LIST OF CONTACTS WITH LAW ENFORCEMENT AUTHORITIES--POLICE, MILITARY, OR BOTH--IN EACH COUNTRY. THE ARTICLE ALSO DISCUSSES PARENT COMPANY STYLES, GOVERNMENT RELATIONS IN SECURITY MATTERS, RELATIONSHIPS WITH HOST-COUNTRY LAW ENFORCEMENT, HANDLING A KIDNAPPING INCIDENT, PROBLEMATIC RELATIONSHIPS, AND EMBASSY RELATIONSHIPS. TABLES ARE INCLUDED. (PRG)