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The purpose of this paper is to study the various theories related to low cost terrorist attacks and factors which act as the key determinants to the costing decision. This research is an endeavour to bring about the factors influencing costing decisions of low cost and high cost terror attacks.

Methodology adopted is a descriptive one which conducts a content analysis on existing theories, based on materials derived from primary as well secondary source data.

This paper argues that the terminology of “low cost terrorism” is ambiguous. This paper states that the nature of attack and the type of attack play an important part in determining the funding levels of terror operations. The decision to taper or increase the cost is more of a “choice” in larger groups but a matter of “compulsion” in smaller groups.

In the process, it attempts to enlighten the counter terrorism community on the need to target the criminal fund raising mechanisms of homegrown groups which act as the main funding resource for low cost terror attacks. It also attempts to enlighten the concerned institutions, to increase physical security measures instead of attempting to sever the funding for this low cost terror attacks which is akin to looking for a needle in a haystack.

The key findings of this research lies in its originality of presentation of facts in a systematic fashion.

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.

There is a clear consensus of opinion that virtual environments and virtual currencies pose a money laundering and terrorism financing threat. What is less clear, however, is the level of risk that they pose. This paper aims to clarify the suitability of virtual environments for conducting money laundering and terrorism financing activities.

A number of experiments were conducted to estimate the quantity of funds that could be moved through these environments. These experiments took into account a number of factors such as the number of accounts that would need to be opened to launder/raise a specific amount of funds, the amount of funds that could be placed within a certain timeframe and the transaction limits imposed by each of the massively multiplayer online games and online financial service providers involved in the money laundering and terrorism financing scenarios.

The findings of this research show that money laundering and terrorism financing can take place inside virtual environments. Virtual money laundering and terrorism financing offer high levels of anonymity, potentially low levels of detection, and remove many of the risks associated with real-world money laundering and terrorism financing activity. However, this comes at the cost of ease, time and, in some cases, the amount of funds laundered. Large sums (millions of dollars) can be laundered in virtual environments, but this exponentially increases the level of effort involved in setting up accounts and placing, layering and integrating funds.

A number of authors have described potential virtual money laundering scenarios, but some of these are out-of-date due to closed loopholes, all are rudimentary and make no attempt to discuss the practicality or feasibility of using these scenarios. This research addresses those issues.

The purpose of this study is to define the interactions that determine how secure a society is from terrorism and to propose a method for measuring the threat of terrorism in an objective and spatio-temporally comparable manner.

Game-theoretic analysis of the determinants of security and discussion of how to implement these interactions into a measure of security.

We show that governments concerned with popularity have an incentive to over-invest in security and that, in certain situations, this leads to a deterioration in net security position. Our discussion provides an implementable means for measuring the levels of threat and protection, as well as individuals’ perceptions of both, which we propose can be combined into an objective and scientific measure of security.

The implication for researchers is the suggestion that efficiency, as well as scale of counter-terrorism, is important in determining a country’s overall security position. Furthermore, we suggest that individuals’ perceptions are at least as important in determining suitable counter-terrorism policy as objective measures of protection and threat. The limitations of this research are found in the vast data requirements that any attempt to measure security will need.

We propose the first method for objectively measuring the net security position of a country, using economic and econometric means.

This paper aims to examine the relationship between terrorism and innovation and the moderating role of venture capital.

The paper has used panel data from 140 countries covering the period of 2007–2016 and has analysed the data by using generalised method of moments instrumental variables (GMM-IV) estimation method to control for unobserved endogeneity among the variables.

The authors find that terrorism has negative impact on innovation. Interesting results emerge when we separated the developed countries from others. The results show that the impact of terrorism on innovation is lower in developed countries. This is due to the fact that strong institutional settings in developed countries make the investors confident by providing support and incentives. Better institutional settings in developed countries also help to reduce uncertainty, which maximise innovation and minimise terrorism risk. The authors also find that venture capital positively moderates the terrorism and innovation relationship. This implies that by providing sufficient fund for technological development, venture capital may help to reduce terrorism risk.

These results may guide the policy makers to find a business solution instead of lengthy political solution to mitigate terrorism risk in emerging countries. Overall, this paper will provide the basis for improving the counter-terrorism approaches from an innovation perspective.

The paper has used terrorism and venture capital data from 140 countries and finds interesting results that may help the policy makers to reduce the effect and intensity of terrorism in emerging countries.

This paper shows that terrorism reduces bilateral trade flows, in real terms, by raising trading costs and hardening borders. Countries sharing a common land border and suffering from terrorism trade much less than neighboring or distant countries that are free of terrorism. The impact of terrorism on bilateral trade declines as distance between trading partners increases. This result suggests that terrorism redirects some trade from close to more distant countries. Our findings are robust in the presence of a variety of other calamities, such as natural disasters or financial crises.

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 purpose of this contribution is to review the theoretical and empirical literature on the economic determinants of terrorism.

Review of the relevant academic literature.

This contribution shows that there is a theoretical foundation to the popular hypothesis that poor economic conditions are conducive to terrorism. A review of the empirical evidence on the economic determinants of terrorism, however, yields an inconclusive result. Some studies find that economic conditions (directly and indirectly) matter to terrorism, whereas a plurality of studies suggest that noneconomic factors are more important.

The findings of the survey indicate that it is unlikely that economic conditions are universal determinants of terrorism. By pointing at several avenues of future research (e.g., a focus on the role of ideology in terrorism), this contribution, however, argues that the opposite also does not need to be true. The influence of economic factors on terrorism should neither be overemphasized nor completely ruled out.

The contribution offers a comprehensive overview of the economy–terrorism nexus and hints at promising areas of future research.

The US insurance industry has long faced the spectrum of large unexpected losses from natural catastrophes such as hurricanes and earthquakes. However, the September 11, 2001 terrorist attack clearly demonstrated a new form of catastrophic risk of man‐made origin. The damages in property and life are now well known as estimates of insured losses deriving from this event range from $40 to $54 billion. The 9/11 terrorist attacks renewed the capacity problem faced the insurance industry in the underwriting of large catastrophic risk. In that regard, this paper explores the feasibility of capital market alternatives to the conventional insurance mechanism, and analyses whether the capital market could provide extra capacity to absorb terrorism risk.