Terrorism And How It Affects Businesses

If a person or a particular group of people use indiscriminate violence to terrorize the people in order to get particular political or religious aims, this is known as terrorism. There are five main types of terrorism. The first type is known as state-sponsored terrorism. In the state-sponsored terrorism, a state or government supports a group of terrorists against another state or government. The second type is known as dissent terrorism. The third type is known as the left and right terrorists on the basis of political ideology. The fourth type is religious terrorists who get motivation from religious beliefs. The fifth type is criminal terrorists who commit some crimes. Here, experts of dissertation proposal writing services will discuss the effects of terrorism on business.

Direct economic destruction The most immediate impact of terrorism is in the form of physical destruction of a business. The terrorists try to destroy plants, machinery and some other business resources. If the terrorism is done on the small scales, it will blow up the small businesses like cafes and small shops. On the other hand, if terrorism is done at a large scale, it blows up large businesses like factories and other industrial units. The most important example of large scale terrorism is the destruction of the World Trade Center. On September 11, 2001, the terrorists attacked the World Trade Center and they destroyed billions of dollars property.

Increased uncertainty in the markets The terrorism can create a sense of uncertainty in the minds of businessmen and due to this uncertainty; no one can try to invest his capital in any kind of business. The best example of this uncertainty in the markets is the invasion of Iraq. When we study the history of the Iraq invasion, we can get an idea that the financial markets remained closed till 2003 and they recovered after the Iraq Invasion. A country which is facing terrorism issues is not able to attract international investors. Its reason is that international investors only invest their capital in the safe markets like Dubai, USA, UK and Canada etc.

Insurance and tourism We can also observe some adverse impacts of terrorism on two vulnerable industries like insurance and tourism. Most of the insurance companies are not able to pay out during the terrorist attacks or international wars. Its reason is that insurance is a business and like other businessmen, the insurance companies also hate terrorism because to work under the terrorist attacks is very risky. We can also observe lots of impacts of terrorism on tourism. Its common example is the Mice attacks in France. Due to the Mice attacks in France, there was a 30% decline in visitors just in one month.

Trade If we see the impacts of terrorism on the broader scale, we can also get an idea that terrorism can also last some adverse impacts on international trade. Its reason is that international traders can face lots of threats in the distribution systems and compromised trade routes. We can also observe a decline in FDI in these countries.