Effects of Terrorism on International Business: A Detailed Analysis Essay This paper gives a detailed analysis of terrorism and its effects in the fast increasing globalization that the world is witnessing presently.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Terrorism has become an international threat, graduating from a minor headache for a few remote countries and regions of this world. Terrorists can strike anywhere and anytime. They have the resources and means to carry out acts of terror in a very planned and coherent fashion.
The recent spate of terror attacks in the Red Sea has opened a new debate on international security. The impact of security threats on the business community became imminent even before the September 11, attacks.
The collapse of the twin towers was the first major blow to international trade and business. Aside from the loss of life and property, many businesses lost their footing after these attacks. International business has become a complex phenomenon in recent decades.
The massive globalization has created interdependency between nations with trade figures running in trillions of dollars.
Given these circumstances, any terrorist attack on global business interests can wreak havoc with the whole fabric of international trade.
International businesses directly affect from global terrorism events. Any bomb blast, that claims many lives and property damage, sours the reputation of a particular place or country. International businesses operating out of that area have to shut down their operations if the situation becomes very worse and damaging regular business operations.
The relationship between risk, security and geopolitical thinking are integral parts of global business practices Suder, pp. This is just like the chain. If any link is broken, the whole process comes to a halt. Rising trends of terrorism in the Middle East region have scared off many investors.
As the business turn their backs on some countries of this region, economic opportunity for both sides diminishes. For businesses, it is the huge population segment that is lost and of course huge profits.
Maritime piracy has become another major threat to international business in recent years. Red Sea is now a bastion of pirates operating from Somalia.
They have taken hundreds of trade ships as hostages since They have extracted millions of dollars as ransom besides killing of innocent merchant sailors.
It is not just the losses — that run in billions of dollars — from these kidnappings. The major issue remains the vulnerability of international trade routes to piracy.
Pirates, who might have links with Al-Qaeda, can easily manipulate and control the busiest trade route in the world. The area is one of the most dangerous and un-governed regions in the world.
Any terrorist organization, in connivance with the pirates, can serve a major blow to international trade. Business implications of this phenomenon are already visible.
Insurance companies have started considering piracy as a war risk rather than a general risk Carey, Some shipping companies are planning to forfeit the use of Suez Canal in favor of the Cape of Good Hope. This will put a strain on shipping costs and ultimately the cost of doing business. Signs of doom are already visible.
In March, 1, ships passed through the Suez Canal, a 16 percent decrease from March The ratio will definitely rise as pirates continue to pound the sea routes.
Maritime security should be on the high priority list of countries using the Red Sea trade route. Despite the global recession, international trade is expanding day by the day.
Piracy issue, however, is threatening the very core of international business. If there is no piracy, ships will be able to navigate through the Red Sea the shortest route to South and South East Asia safely.
The safe trade translates into more business opportunities and increased prosperity. We can only promote international trade if we can ensure safe trade routes.
The only solution to this kind of terrorism is a stern and abrupt tackling of the issue. United States and other international powers should devise strategies to secure international seas.To make the effects of the terrorist activities stronger terrorist groups try to make firms their direct targets.
Business are more attractive target for those groups as their presence is everywhere and their aftermaths are more deep on society and on the economics. Conclusion: Terrorism effects business activates deeply. Understanding the effect of global balance of power on international business is a necessary prerequisite for investigating the effect of security on international business.
One of the most serious security concerns in the 21st century is the threat of terrorism and terrorism related activities. Effect of Terrorism on International Business Essay Sample. Terrorism is the biggest threat ever faced by humankind.
Terrorism has become an international threat, graduating from a minor headache for a few remote countries and regions of this world.
Terrorists can strike anywhere and anytime. Effect of International Terrorism on Indonesia Essay "International terrorism" means activities together with the following three attributes: 1. Involve violent acts or acts dangerous to human life that violate federal or state legislation; 2.
Child's Play is Serious Business Essay. 8 May pm. In the market, people are devastated from terrorist acts as human tragedies happened most of the time.
Because of fear, many people didn’t want to take the risk to start a business as terrorism could strike anytime and anywhere and eventually it brings down the economy (Market, n.d.). Understanding the effect of global balance of power on international business is a necessary prerequisite for investigating the effect of security on international business.
One of the most serious security concerns in the 21st century is the threat of terrorism and terrorism related activities.