Question

Answer the following questions.

Explain the economic effects of terrorism.

Answer 1

The following are the economic effects of terrorism:
a. Terrorism creates fear and suspicion in the minds of people, which prevents them from trading freely.
b. Terrorism has an adverse impact on the foreign trade of a country. Most affected is the tourism sector of a country.
c. Terrorism also affects the social and political values of a country. People lose faith in the law-enforcement agencies in the country and are under a constant fear.