Question

write a note on the impact of terrorism in international politics ? ​

Answer 1

Answer:

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.

Terrorism increases uncertainty, which raises the cost of traded goods, especially relative to similar goods produced in a terrorism-free country. Terrorism increases the cost of doing business by raising both insurance premiums and security costs, which decreases the competitiveness of goods.