The Impact Of Terrorism On International Business Activity.

INTERNATIONAL BUSINESS
A summary of the main kinds of terrorism affecting our economy, trades, alliances, and security over the world. AMY Y. STEER 12/3/2008

The Impact of terrorism on International Business Activity At the end of the XVIII and XIX decade and at the end of the French revolution gave some beginnings of some terrorism attacks. The biggest manifestation of terrorism was after the Second World War in 1960.After this event started a war between Israel and Palestine, the cold war. Terrorism is an act of violence that has been through the years thru wars and conquests. Terrorism can be internal and global as an open way to any violence act without moral restrictions. The objectives of a war are usually about politics, religion, and cultural where a person in a society of a country doesnt agree with the government or between two countries that have differ in some issues. Every day on the news a person can see terrorism attack on the public streets where innocent people lost their lives. There are three types of terrorism which are: Drug terrorism, nuclear terrorism, and terrorism of the state. The drug terrorism is the use of drugs traffic to promote the objectives of some terrorism governments and organizations. The nuclear terrorism is one that many countries will have to worry in a couple of years. The ex-soviet union is the main one to worry about it. Finally the terrorism of the state is when a government imposing obedience and an active contribution to the population. The most they developed forms of terrorism of State, for the ones that the term was invented, have been the employed systems in the 20th century under the fascism and the communism. There are many characteristics that lead to the international terrorism that are: Its indiscriminate violence: extends its effects to the totality of the population, Its unpredictability: acts with surprise instilling terror, Its immorality produces unnecessary suffering: they strike the most vulnerable areas, It Is indirect: deviates the look of the population to a point, that is not the white one that are proposed, the escape of the religion and in some measure of the nationalism and its basic concepts, product of the
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Globalization that does not know borders. The boom of it takes of hostages and human shields, the Terrorism on its own that has as white to the civil population, and Growing Participation of soldiers, former military, and members of the intelligence services. There are many ways how the terrorism has had an impact on the international business activity which are: on the tourism area, the aerospace area, the trade and alliances with other countries, the security on the airports, and investment overseas. Through the history one has seen many manifestation of terrorism in the world, but the most recent and had a big impact on the global economy was the attack to the United States on September 11, 2001. The whole world suffers a fall in the economy, financial markets, international trades and alliances. The united States establish more borders regarding alliances or trades overseas. The first down that the United States economy suffers was on the higher prices of oil. One was feeling one of the first effects of the international terrorism. Since the United States was one of the biggest imported from oil from the Middle East, it break down some of his relationships or trades with many countries were used to imported oil. Another impact on the international business activity was the increment of security on the airports. After the attack of September 11, 2001, the United States and even the whole world saw the weakness on the security on the airports. Many countries and especially the United States who suffer the most from this attack, it spent millions of dollars implementing and increasing the security on airports. Now one is not allowed to bring any liquid substance or element that would help to create explosives or other gun. One has to pass to a massive inspection before boarding any plane or to go beyond security area. The government was worried about having a higher security on airports than worried about the economy.

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The tourism area suffered a down on sales after September 11, 2001. One was scared to travel and the prices of the air tickets went up due to the increment of security on the airports and the prices of oil. Before 9/11 one was able to travel more often, now it seems to travel as a luxury. Many people were laid off of their work since sales on the aerospace area were dramatically down. I remember last year that I went home for Christmas; I was able to bring two luggages with me. Now if I want to, I have to pay for each one, something that has had a big impact on sales. Moreover, the United States implemented more security and quality of control were imposed to all the imports brought to the United States from overseas. Also now it is more difficult to obtain a Visa from the United Sates than I was easier before. One from the Middle East affronts more difficulties to obtain one than one from South America as an example. Also one is scared to travel to any Middle East country. Many people traveling to countries like Israel, Iraq, Colombia, and so many more have been victims of being kidnapped from terrorists and some many innocents have lost their lives. After the event of the 9/11, the united States have started a war with Iraq and with many countries that have or are contributing with terrorism. Many soldiers and innocent people have lost their lives and the united states have spending billions of dollars to contribute to stop terrorism, moreover, to stop the Al Qaeda organization whom are the responsible of the attack of the 9/11 to the united states of America. The United States has broken any kind of relationship or trade with Iraq, Afghanistan due to events occurred. Due to terrorism raise the cost of doing business overseas. Many companies needed to pay higher taxes revenues and to increase the insurance premiums; moreover, international trade was becoming more expensive due to stronger secure measures and higher border protections implemented from many countries. Another event followed the 9/11 was the event that occurred on Madrid, Spain on march 11,2004 on four railroad where many about over 50 people died and
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many got insured. A year after the Madrid event, London was another scenario. This time occurred again on the railroad too and it took place on July 17 of 2005. Moreover as mentioned before, drug terrorism is another kind of terrorism, Colombia is a clear example of this. Thru the time Colombia has been fighting to put an end to this kind of terrorism and the united stated has helped them to stop this terrorism. Many innocent people have been kidnapped and many lost their lives by the warfare that opposed to the government. Another kind of terrorism is the nuclear one. The United States has broken any kind of relationship with Iran since they dont argue with the creation of nuclear weapons. The United States argued that Iran has been supporting Palestinian rejections with weapons. North Korea is another example too. The United has called Iran as the The worlds leading state sponsor of terrorism. Since the 9/11 event the United States has tried to make Iran to stop the creation of this nuclear weapons and to get alliance with other developed countries as Germany, England and France to stop any trade relationship with Iran if doesnt stop the creation or enrichment of Uranium. Many studies have showed that Iran has been the central banker of terrorism in many countries such as Lebanon, Palestine, Afganistan, and some participation in the south part of Iraq. North Korea is another example too, the united states has broken any relationship when they found out that North Korea was the one providing nuclear weapons to Pakistan and Iran. As consequence the United States stopped delivering heavy oil, backtracking his promise and bringing to lift some economic sanctions. Another kind of terrorism is the one from the state. This kind of terrorism is the one under the government system of the communism or fascism on a pattern despot. An example of this is Cuba, which for many years have been facing the communism. Cuba has been always left away

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for many alliances or to form part of some many important trades. The United States has been the main one argued about this form of government and has punished the country for this cause too. Any country that will be part of this pattern has been punishing too. Today one can see how Cuba has gotten closed with Venezuela which many specialists argued have the same pattern of government. A clear example of this is Honduras who become part of the trade called PETROCARIBE, which is a trade among Venezuela and other countries such as Nicaragua, Bolivia, Dominican Republic that offers oils prices at lower costs and along term contract for the debt. Honduras suffers its first punishment for being part of this alliance with Venezuela. For many years Honduras has been exporting melons to the United States and knowing every quality of control that needed to meet. A big load of melons where returned because the United States said the company didnt meet the standards of quality that for many years have achieve it. The company went bankruptcy since for many years were the number one imported of melons of the United States and that was a punishment from the USA thru Honduras from being part of that trade. Another example was Bolivia, who had a similar case, American Airlines stopped to make operation there due to some differences between the US government and Bolivia one. In conclusion, terrorism has a big impact in the global economy. A country affected by any kind of the terrorism mentioned before, it will reduce the potential to participate in other trade or alliances among other countries as well as to reduce some budget that could be used in other things instead in a war. The United Nations has been fighting to stop international terrorism and has invited every country to participate to stop with it. One is living an era of violence where every business activity is taking the chance or risk to be affected by a terrorism attack.

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