What are the economic consequences of terrorism?
Terrorist acts can cause ripple effects through the economy that have negative impacts. The most obvious is the direct economic destruction of property and lives. Terrorism indirectly affects the economy by creating market uncertainty, xenophobia, loss of tourism, and increased insurance claims.
How did the 9/11 attacks affect the economy?
By this approach, the immediate impact of the 9/11 attack was to reduce real GDP growth in 2001 by 0.5%, and to increase the unemployment rate by 0.11% (reduce employment by 598,000 jobs.) Forecasted real GDP growth in 2002 fell dramatically immediately after the 9/11 attack but then recovered fully.
How does globalization affect terrorism?
Terrorists successfully exploit the process of globalization and use it to increase their resilience, violent means, and presence globally. Globalization that is highly developed and economic downturn has led to increased violence.
How did 911 affect society?
The impact of 9/11 has extended beyond geopolitics into society and culture in general. Immediate responses to 9/11 included greater focus on home life and time spent with family, higher church attendance, and increased expressions of patriotism such as the flying of American flags.
Is terrorism caused by globalization?
Global terrorism can stem from the adverse effects of globalization, imbalance of power, disparity of players, and power vacuum. Failed states, separatist minorities and radicals use terrorism as warfare in order to counterbalance the power gap or to consolidate their authority.
How does terrorism affect global business?
Terrorist attacks in trading partners result in larger transaction costs, greater transportation costs, increased uncertainty, lost income, and larger business costs (e.g. greater border controls and higher insurance rates), which negatively impact trade (Nitsch & Schu- macher, 2004).
What was the economic impact of 9/11 on New York City?
In New York City as a whole, the attack caused an additional loss of about 143,000 jobs per month over a three-month period beyond the trend in job losses already occurring as a result of the economic recession of 2001.
How much did the aftermath of 911 cost?
It was calculated that the lost human productive value, life insurance payouts were $2.63 billion, federal payments after offsets were estimated at $2.34 billion and charitable payments were $0.79 billion.