engleski

Does Terrorism Affect Trade and Tourism?

Terrorism is a method for achieving certain (most often) political goals, and it is based on the acts of violence, criminal activities and endangerment of broader social groups, while spreading fear. Although there are recorded situations when terrorist acts were performed by individuals, they are largely attributed to different terrorist organizations, wherein a terrorist organization is defined as an illegal, secret organization, generally consisting of a planner, a trainer and actual killers. In international business, terrorism has become a daily challenge and the risk of terrorism, as a type of political risk, has been integrated more and more into the systemic models of risk assessment. As well, terrorism involves considerable risks and greatly influences international operations, where we can differentiate the prevention costs, direct and indirect costs related to terrorism. Terrorism creates considerable costs in international business dealings during all phases. It is the indirect costs that have the most significant influence on international business, since they have a constant negative impact on the business environment. Literature suggests that the awareness of considering the danger and risks connected with terrorism is growing and that many international companies are already using different mechanisms for protection in order to increase the security of their property and employees and preserve international business continuity. The aim of this chapter is to, based on the research of specific economic and political factors on the example of France and Egypt, come to conclusions on the possible influences of terrorism, especially concerning tourism and trade.

Egypt, France, terrorism, trade, tourism.

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