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This chapter begins with a comprehensive review of the study on terrorism that has emerged in the last two decades and the consequences of terrorism in terms of economic theory. It aims to highlight the potential influence of terrorism on the distribution of military expenditure among different countries across the world. Moreover, the chapter seeks to shed light on the evolution of economic theories and models for explaining terrorism in a strategic environment to indicate the research gap in this field and presents an attempt to measure the impact of terrorism on the economic growth by considering the connection between the intensity of military expenditure made by a country and the security it faces as impinges by terrorist activities.

The intent of this paper is to provide an overview of the principal provisions of the Terrorism Risk Insurance Act of 2002 (the ‘Act’),1 which became law in the USA on 26th November, 2002, and the practical effects which the Act has had on the state of terrorism insurance coverage as it had evolved between 11th September, 2001 and the passage of the Act. The Act voids some of the exclusions which had made their way into insurance policies (particularly post‐9/11) relating to losses from certain ‘acts of terrorism’ (as defined by the Act) and requires insurers meeting certain criteria to ‘make available’ terrorism insurance coverage to their insureds. The Act also establishes a temporary federal reinsurance programme which provides a system of shared public and private compensation for insured losses resulting from certain certified acts of terrorism. From the standpoint of the average insured, however, the practical impact of the Act has been far less dramatic than may appear on the face of it. As The Department of the Treasury explained in its Final Rule,2 one of the main purposes of the Act was to address market disruptions that resulted in the aftermath of the September 11th terrorist attacks on the USA and to ensure the availability and affordability of property and casualty insurance for certain risks associated with acts of terrorism. In addition, the Act was designed to provide a transitional period for the private insurance markets to stabilise, thereby allowing insurance companies to resume pricing terrorism insurance coverage. The Act also sought to build capacity in the insurance industry to absorb any future losses, while preserving insurance regulation and consumer protections in the individual states.

The purpose of this paper is to present research findings that improve our understanding of the role for business in the “War on Terror”. This paper is not about examining counter‐terrorism commodities or products. Rather, this paper aims to examine management attitudes and techniques for creating images of security that work to reduce the risk of terrorism.

A brief literature exploration informs research that was carried out in Melbourne, Australia in 2005 with managers in organisations located in Melbourne's central business district (CBD). This research comprised in‐depth interviews of 40‐60 minutes in length. In total, 12 managers were interviewed. Two key respondents emerged and their views are presented in this paper.

It is argued in this paper that managers are compelled to engage in counter‐terrorism in order to protect customers, clients and the public. Yet counter‐terrorism security is often not what it seems. When businesses are engaged in countering terrorism they are engaged in creating images of security.

The sample population for this research is quite small and is not intended to be representative or generalisable to a larger population. Rather, this research represents special cases where counter‐terrorism has become an important consideration for business security. The results highlight effective and tangible mechanisms that managers can adopt to play a key role in the “War on Terror”.

This research can assist managers in preparing their response to terrorism and the threat it poses to their business.

Research on terrorism and business is rare and often under‐developed. This research contributes to our understanding of how businesses must confront and respond to terrorism.

The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms.

This is a conceptual paper.

Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures.

The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.

The purpose of this study is to investigate the impact of terrorist attacks on the volatility and returns of the stock market in Tunisia.

The employed sample comprises 1250 trading day from the Tunisian stock index (Tunindex) and stock closing prices of 64 firms listed on the Tunisian stock market (TSM) from January 2011 to October 2015. The research opts for the general autoregressive conditional heteroscedasticity (GARCH) and exponential generalized conditional heteroscedasticity (EGARCH) models framework in addition to the event study method to further assess the effect of terrorism on the Tunisian equity market.

The baseline results document a substantive impact of terrorism on the returns and volatility of the TSM index. In more details, the findings of the event study method show negative significant effects on mean abnormal returns with different magnitudes over the events dates. The outcomes propose that terrorism profoundly altered the behavior of the stock market and must receive sufficient attention in order to protect the financial market in Tunisia.

Very few evidence is found on the financial effects of terrorism over transition to democracy cases. This paper determines the salient reaction of the stock market to terrorism during democratic transition. The findings of this study shall have relevant implications for stock market participants and policymakers.

The MENA region is very rich in terms of natural resources. At the same time, the MENA region has also been a victim of terrorism during the last few years. This study is an attempt to investigate whether there is any relationship between natural resources and terrorism in the MENA region.

We have focused on 15 resource-rich countries located in the MENA region for the period 2002–2019. We have applied appropriate econometric techniques and have also controlled for other dominant determinants of terrorism while studying the relationship between these two variables.

The results provide solid evidence in favor of the hypothesis that natural resources encourage terrorism. We find that natural resources have positively impacted terrorism. Besides, the natural resources, other factors such as per capita GDP, trade openness, political stability, domestic investment and government expenditures have negatively impacted terrorism. Moreover, the findings suggest that FDI and corruption are irrelevant in explaining terrorism while the findings regarding employment level and terrorism are unexpected. The obtained results are robust to alternative estimating methodologies.

The results have serious policy implications for the MENA region. The MENA region in general is suggested to devise appropriate policies regarding their huge natural resources so as to tackle the terrorism problem effectively. Similarly, paying favorable attention to trade liberalization, political stability, government expenditures, investment, rising income of the population in the presence of macroeconomic stability in the form of lower inflation would also help the MENA region to eradicate the problem of terrorism.

The available literature has largely ignored the role of natural resources in explaining the problem of terrorism. Therefore, this study has provided relatively new evidence regarding the determinants of terrorism.

Terrorism has historically been spawned by inequitable, unjust systems with inadequate democratic options to articulate popular aspirations and ensure conflict resolution. The event of September 11, 2001 changed it all when terrorism hit the center of the increasingly globalized post-Cold War international system. The 9/11 incident has played as the role of a catalyst in initiating joint governmental policies to combat international terrorism both in India and the USA. After the incident, the former US President, George W. Bush, announced to the world community to fight against international terrorism collectively on the basis of a zero-tolerance policy. India has been the victim of cross-border terrorism promoted by Pakistan for a long time. India is the world’s largest democracy and one of its fastest-growing economics. Due to the recurrence of terrorist attacks, its security system and its socioeconomic structure have had to face tremendous pressure. Just after the 9/11 incident (attack on WTC) world’s largest (India) and oldest (USA) democracies have come closer to jointly fight against international terrorism. Both al-Qaida and the Taliban were the common enemies for Washington and New Delhi. At the governmental level, a number of policies and working groups have been organized by the two countries in order to diminish global terrorism. This chapter intends to explore the effects of joint governmental policies by India and the USA for combating international terrorism.

During the period 1962-2001 (9/11), the author identified 25 terrorist acts in the English-speaking Caribbean. Apart from US action in Grenada in 1983, the extra-regional response to these acts was minimal. However, in the aftermath of 9/11, the US has introduced a number of counter-terrorist measures into the region from Washington through such agencies as Southcom, the FBI, the DEA, and the Department of Homeland Security, now including the Coast Guard, to forestall future acts of terrorism. Also the UN, the OAS, and the CARICOM, at the instigation of the US, have encouraged Caribbean nations to adopt resolutions and pass anti-terrorist legislation at the local level in the fight against terrorism. US policy toward the region is based on its own self-interest since it considers the Caribbean its “Third Border,” one that is difficult to close to security threats. In all of this, the Caribbean nations welcome the security, more so because of the incidental protection it offers to their fragile tourist-dependent economies that are sensitive to political and other threats. This coincidence of interest has seen the US merge drug-trafficking and terrorism into one consolidated threat. Traditionally, the Caribbean region has not allocated a large part of its budget to security concerns, but with external assistance, particularly from the US, the region's police and military forces have been called upon to adapt to the global threats of the post-9/11 era by strengthening operational capacity, mission readiness, and intensify regional cooperation. This new thrust also includes making border tightening security measures more comprehensive and robust as well as the sharing of information, including intelligence. As long as the US perceives the terrorist threat a priority, Caribbean security policy will continue apace.

This chapter examines the role that strategic marketing plans play throughout the process of destination recovery post terrorist attack for the purpose of encouraging the return of tourists. It investigates the impact that strategic marketing plans have as a part of crisis management applying a mixed-method approach which utilises survey data examining future industry leaders to quantify perspectives regarding the relationship between terrorism, tourism and destination marketing. Furthermore, this chapter reviews destination marketing techniques employed by international locations to determine recovery strategies utilising marketing plans. Bali, Paris, Northern Ireland, New York, Sri Lanka, Syria, Tunisia and Turkey were selected as case studies because they have been the focus of significant research studies to date (Asia-Pacific Economic Cooperation (APEC): BBC News, 2019; Ferreira, Graciano, Leal, & Costa, 2019) which have primarily focused on the relationship between terrorism and tourism regarding the collapse of the tourism industry. A survey was issued to gain perspectives regarding the relationship between terrorism, tourism and destination marketing. Second, case study analysis was conducted to examine both successful and unsuccessful destination recovery strategies. Results indicate that destinations that utilised strategic marketing as a part of crisis management frameworks experienced the return of tourists and recovered. This research contributed to the development of an inclusive, universal crisis management framework encompassing strategic marketing plans as a tool for recovery.