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For modern world ,the terrorism become a new risk to the business world.So how come it can affect to the world economy ?what areas it can affect and how we can do to keep a healthy economy enviroment ?

2006-12-05 12:47:13 · 2 answers · asked by sweety 1 in Social Science Economics

2 answers

Here's a reference to one case study:

The Economic Costs of Conflict: A Case Study of the Basque Country
Alberto Abadie; Javier Gardeazabal
The American Economic Review, Vol. 93, No. 1. (Mar., 2003), pp. 113-132.

Abstract
This article investigates the economic effects of conflict, using the terrorist conflict in the Basque Country as a case study. We find that, after the outbreak of terrorism in the late 1960's, per capita GDP in the Basque Country declined about 10 percentage points relative to a synthetic control region without terrorism. In addition, we use the 1998-1999 truce as a natural experiment. We find that stocks of firms with a significant part of their business in the Basque Country showed a positive relative performance when truce became credible, and a negative relative performance at the end of the cease-fire.

2006-12-05 15:36:37 · answer #1 · answered by NC 7 · 0 0

What's bad for the economy is good for business. I don't remember who said it, but they were right! When something is harmed, businesses rush in with products to cure all our ills. This is just a fact of business life. It does not even matter whether or not the product(s) work, as long as the populace can be maneuvered into buying it. And if one can persuade the world governments to buy, or to fund the research, so much the better! So you see, what's bad for the earth really IS good for business, a.k.a. the economy.

And do not ever forget that, aside from the negative effects to tourism, which is not really that big on the overall economy scene, wars have always been good for world economy. Wars cause damage and destruction, which leads to mandatory rebuilding and restoration, hence more jobs and merchandise, hence more money to buy, ergo a healthy economy!

That is just the tip of the iceberg. Further research into, perhaps WWII & WWI, should net much more evidence of war's beneficial effects to the economy, such as the decimation of large numbers of the poorer class working people, which opens up thousands of jobs, etc.,etc.

You can also say that what is good for the economy is hard on mankind!

Hope this helps.

2006-12-05 21:07:53 · answer #2 · answered by therealme 3 · 0 0

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