The internationalization of higher education is as old as the university itself. Recently, however, there has been a growing interest in transnational higher education, a specific form of internationalization which considers education as a product which can be packaged and sold abroad. This research explores the transnationalization of the Stockholm School of Economics, with an emphasis on its foreign branch campus in Riga, Latvia. It adopts the philosophy and methods of praxiology, and it follows the abductive logic of grounded theory. The research results include a modeling of the transnationalization of the Stockholm School of Economics as an activity system.