Terrorism is a major issue worldwide and its negative effects on international business are a major concern for international companies. The economic costs of terrorism include:

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All of the choices listed contribute to the economic costs of terrorism on international business. The increased cost of insurance is a direct cost for companies as they seek to protect themselves from potential damage or disruption caused by terrorism. Developing countries may be affected more severely due to their weaker economies and lack of resources to respond to and prevent terrorism. The uncertainty created by the threat of terrorism can cause businesses to delay investments or expansion, impacting trade and economic growth. Additionally, terrorist attacks can disrupt regional economic prospects by damaging infrastructure, decreasing consumer and investor confidence, and creating political instability.

Terrorism Is a Major Issue Worldwide and Its Negative Effects