May i know what are the impact of terrorism on world economic ? All views are welcome. Thanks.
Originally posted by WeiTeck:May i know what are the impact of terrorism on world economic ? All views are welcome. Thanks.
Not much damage I think. There may be some bad effects on tourism, other than that, not much influence.
I agree with will4 that there are damages done to the country's economy. Oil prices increased after the 911 attack, and the US stockmarket suffered in the subsequent years. As everyone knows, US economy has a certain impact on the world's economy, not to mention Singapore's. Many people preferred to remain in their own countries for fear of a similar repeated attack. Hence, tourism numbers greatly reduced and the whole tourism industry was greatly affected. As seen, terrorism took a toll on businesses and country's revenues decreased.
Dear Wei Teck,
Another homework assignment?
I'd like to add to the tourism contribution.
If transportation was targetted, you'd see work interruptions. This could result in losses due to missed deadlines and subsequent claims. Insurance companies would have to liquidate assets to make payouts. Stock market prices would likely fall as insurance companies liquidated their investments and construction would boom and building materials increase in price. A recession could arise from the depressed stock market in the interim.
There would be pressure by the people on the Government to resolve these attacks, which is mainly what terrorists are after.