Economics+of+Terrorism

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=The Economics of Terrorism=

The economic consequences of terrorism
Terrorist attacks are intended to apply sufficient pressures to a government so that it grants political concession. If a besieged government views the anticipated costs of future terrorist actions as greater than the cost of conceding to terrorist demands, then the government will grant some accommodation. These consequences can assume many forms including casualties, destroyed buildings, a heightened anxiety level, and myriad economic costs. The cumulative costs of 9/11 terror was a small percentage of US gross domestic product, which exceeded $10 trillion. Terrorist incidents have economic consequences by diverting foreign direct investment, destroying infrastructure, redirecting public investment funds to security, or limiting trade.