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It has added a lot of volatility to the market. For instance, every time there is a "crisis" in the Middle East (Iran threatens Israel, etc), the price of oil goes up. This is because a war in that region would result in a disruption in the supply of oil (see the Iraq War), so any hint of a problem causes a jump in prices. Also, the attacks of 9/11 put the American economy into a recession. Whenever there is a lot of uncertainty (and the threat of terrorism does that easily), it creates a lot of risk aversion, which has a lot of negative effects on the economy such as less investment, less spending, and less risk-raking.
What else can I help you with?
How does bushfires effect economy?
the economy looses millions of dollars paying for repairs
What effect does new technology usually have on an economy?
It makes the economy stronger and more efficient.
When the price of copper goes down how does that effect the economy in Chile?
The economy of Chile suffers
How does the labor unions affect a mixed economy?
How dose labour unions can effect a Mixed economy
What is the effect on the government when the economy is in decline?
prices rise
How does terrorism affect the economy?
Negatively war generally does not help the economy
How has Britain been affected by terrorism?
its economy has suffered
How has terrorism affected the whole world in the recent past?
in recent past terrorism effect the whole world. most of the people effect them
What is the effect of terrorism in tourism industry of the Philippines?
well, one of the negative impact of terrorism in the tourism industry is the decline in the arrival of international tourists thus it severely affect the economy of the country.N o matter how beautiful a country is , tourists will not come in the Philippines because of their fear of the lunatic terrorists.
How can tourism effect on tower of London?
Is this tourism or terrorism?
Did terrorism effect the Olympics in 1972?
yes in munich
What is Rick Santorum issues?
Terrorism, Jobs, health care, education, and Economy.
How does terrorism effect police?
There are hudnreds of ways in which terrorism effect the police, fistly, police have to get much more training now and they will be told what to do in certain eventualities, police get more powers when it comes to terrorism. This means spending more money and the governmenet allocating the police more funding.
What is a issue that the US is currently addressing?
It's economy, terrorism, and Immigration... just to name a few.
What effect does Technical College in Georgia has on the economy?
I wanted to know what effect does Technical Colleges have on the economy
What is political terrorism?
Defining terrorism has always been difficult. One of the criteria for an act being considered a terrorist act is often the use of violence for the furtherence of political or social goals. Political terrorism specifically refers to terrorism whose goal is to effect political change.
Impact of terrorism in Indian economy?
Terrorism can have various effects1) Tourism of an economy slides to the negative scale due to intimidation.2) Agricultural Production of an economy is greatly affected3) There is a Direct Human and Militaryloss4) Share Markets and GDP gradually are shown the way down5) Loss of Population or manpower will decrease the working population of the nation which is a great loss.
