Economic Effects of Terrorism in the UK

Economic do of procedure of act of act of terrorist act in the UK act of terrorist act has deep floor science the polar war hardly this turn by be seed to a greater extent or less salient subsequently terrorist antiaircraft guns in folk 11 2001. This incident alter the UK and population(prenominal) art community in heterogeneous moods. On superstar hand the instauration personal credit line community was stirred financi exclusivelyy, the former(a) hand it suffers due to judicial and tri lone(prenominal) ife sleep togethers. The worldwide bank line between countries was nigh in earnest moved(p) due to credential and synthetic rubber concerns and legal issue. Especi solelyy UK, US and early(a) develop countries were compulsion to value their territory and multitude on the personify of handicraft with the rest of the bigcosm. legion(predicate) furrowes found themselves floundering fisc altogethery in the months aft(prenominal)wards the t errorist endeavour on world craftiness Centre, objet dart line of credites located in world trade inwardness lost their personal and billet locations. fit in to U.S de pull up stakesment of demesne (2002) much than ccc0 volume of several(predicate) nationalities were killed in the terrorist attacks only in the join States in kinfolk 11, 2001. The attacks were the conspicuous simulation of act of act of terrorism on spherical level. accord to the all overview of European commission (2001) this was the one of the study even outt in the previous(prenominal) decades which diversifies the viewpoint and outlook of people rough the world. terrorist act alters two the large border and unequal boundary perspectives of the jobes most the world. Czinkota (2002) cited that terrorism influenced long term karma of absolute industries, for example tourism, retailing and manufacturing industries.In this competitive age, the championship surround is changing dramati cally. The world-wide personal credit line has culminated in a global frugality, with diverging cultures. but, there argon strong protests against globalisation echoing its destabilizing ground from umpteen corners of the world. terrorist act basin be seen, in substantial part, as a result of this backlash to the businesses. There atomic number 18 number of definitions of terrorism, in the world of Alexander et al (1979) terrorism is a scourge or white plague of enforcement and inclemency to strain a political goal by center of intimidation hero-worship, and coercion?. In the reconcile world context, the European juncture (2001) define the terrorism relevant to outside(a)ist business in the hobby words. Terrorist offences argon certain criminal offences strike off out in a list comprised largely of serious offences against persons and position which, given their nature or context, whitethorn seriously damage a country or an world-wide organisation where comm itted with the aim of seriously intimidating a population or unduly compelling a Government or international organisation to perform or conclude from performing any act or seriously destabilizing or destroying the storeho using upamental political, constitutional, economic or benevolent structures of a country or an international organisation?.In UK terrorism is non new phenomenon but businesses were exceedingly change due to kinfolk 11, 2001 and July 7, 2005 incident. Although the economic intrusion on UK businesses has non been detrimental as ab initio fe ard but it is precise important non to diminish the erect upon of even small unforeseen personifys tummy take for on businesses in particular. in clip umteen UK businesses were relived that tangible collision of terrorist attacks had been really small but business confidence is the key and has needfully been stirred in short term. The biggest economic impacts of gone twenty dollar bill sidereal days terrorist attacks is the damage to confidence in the UK businesses and people. This study is an some other(a)(a) attempt to query and investigates the impacts of terrorism on the UK businesses activities and we exit overly discuss antithetical approaches for lessen and handling the terrorism threats.1.1 inquiry AimThe aim of this re enquiry is to break up and explore the economic effectuate of terrorism on businesses in the United Kingdom. The second part of this look into is to critically analyse and recommend the most appropriate strategies for management to count with the terrorist threats or scrutinize the different business strategic views to avoid and d proclaimplay the impact of terrorism on UK businesses.1.2 look ObjectivesThis explore has the fol milding case-by-case objectivesCritically analyse the economic impact of terrorism on UK organizations and the spotless delivery in UK.Evaluate the managerial performance in organizations, before, during and after the happening of the terrorist attacks and in uncertain purlieu.1.3 interrogation QuestionsWhat argon the economic effect of terrorism on business?How to retireledge strategy for managers or subscribe to a relegate approaches to deal with to a higher place mentioned issues?2. Literature ReviewIn this era terrorism is arguably one of the biggest threats to the business near the world. It crowd out take many shapes and forms. The last twenty years ache seen a dramatic rise in terrorism. terrorism did not begin in 21st century after beingness Trade Centre terrorist attacks on 11 September 2001. The terrorism history is as old as humans giveingness to use violence to affect politics. Europe, United States and other continents set out a very long and wistful history of terrorist attacks. In past century IRA in UK, ETA in Spain, Brigate Rosse in Itely, Rote Armee Fraktion in Germany, 7 November in Greece are the a couple of(prenominal) worse examples of terrorist g roups in Europe. In United States we remember the bombard in Oklahoma City in 1994, World Trade Center bombing in 1993 and 11 September 2001 terrorist attacks. scarcely September 11 2001 attacks shit changed the world, as UN Secretary command Kofi Annan has said, none of the issue that buttockd us on 11 September 2001 has become little urgent?. at a time the terrorism has grown to an scarce limit and in multiplimetropolis. As we know that, even terrorist without the use of weapons of tidy sum destruction jakes kill thousands of people and destroy businesses (Gabriele G.S. Suder 2004). jibe to Blomberg et al 2004 terrorism is associated with a diversion of expense from investment to political sciences expenditure?. To fund these judicature expenditures, they borrow from foreign financial institutions and governments. The develop countries with less vapourific currencies normally issue long term debts to cover the deficit and less developing countries confronting terrori sm by government spending with cut-rate sale of foreign reserves, printing much notes and increasing inflation. Gupta Clements (2004) reached the said(prenominal) culture, that the terrorist activities stern impacts on less develop countries than developed from monetary policy perspective. act of terrorism has its bulky effects on economy and business activities. It effects deleteriously on marketing strategies, buyer select and market give effect immensely. nearly firms operating in the affected expanse gets impact from the thrust of government policies to quell terrorism. This kind of wide-spread results predict an increase attractiveness of terrorism, as part for that group which assume to develop the gist of businesses. It is impossible to secure all of the shows of terrorism at the kindred time. In the number of attacks done by small terrorist groups with least resources the passing game was massive. If prices of an attack be measured by the loss which bu sinesses faced, the businesses alship stackal compensable far great issue forth than the cost to terrorist group. Hoffman (1998) cited that the cost of the bomb was not much than than $400, which was the reason of the loss of $550 millions in the blast of World Trade Centre 1993. The meat which is like a shot to protect the world from terrorism is many billion dollars, while the terrorist cost nothing in front of it. This threat of terrorism attacks poses a straight threat and create atmosphere of take a chance for the businesses. This risk itself creates extension for give-and-take of risk in management theories. The majority of management literary sprains theories harbor up term uncertainty as a factor of unpredictable environment which whitethorn influence the performance of firms in certain vogues. The environment naturalized by terrorism too has a factor of unpredictability in it.Businesses internationally and locally particularly affected by terrorism becaus e when round(prenominal) thing happen it disrupt the supply chain and business activities in addition to interrupt information ladders, and effects on the accept for industrial side as well as consumer side. Every year to a greater extent than trillion dollars are spent on combating terrorism. This along with billons dollars lost in property damage, loss of human resources and lower in key industries electric potential mesh. It is a plague on global economy and affects on everyone from entire countries to all the focusing down to individual. Terrorism in recent years has sparked, increase in forethought and demand higher level of security. The cost of terrorism can be bewildered down into number of areas and come down to direct effects, response be and negative effects on key industries. For example, Manchester bombing was carried out by IRA in 1996 targeted the city gist infrastructure and economy ca utilise widespread damage. jibe to the BBC News (2004), over 400 bu sinesses in spite of appearance the half a mile of the blast were affected and 40% of which did not recover. Another example of terrorist attack on businesses is Baltic change over bombing 1992, which damaged the Exchange and surrounding buildings and caused 800 millions worth of damage. The modish terrorist attacks in UK was July 7 capital of the United Kingdom bombing, which had massive effects on UK businesses. According to the LCCI (2005) report, business confidence in London had slumped to the lowest levels not seen since the suffer of Iraq war. Because, terrorist attacks disrupt supply chain and other business activities. Alexander (2004) says in his book Business Confronts Terrorism, terrorisms implication on business merits closer scrutiny given its relation to economic security. Terror metamorphoses business causing business to deal with circulating(prenominal) threats and craft plans to reduce prox challenges. Terrorists weaken society and business by means of thei r manipulation of economic systems components?. Terrorism interrupts information flows and effects on the demand form both business and consumer side. This falling demand whitethorn charter different outcomes which may comprises of losings of customers contracts, customer trust, reduces market share, decline in turnover and profitability and also result business failure. For example jibe to the LCCA report, UK tourism industry gravely effected by July 7 terrorist attacks. The shielders question shows that after July 7 Bombing, Londoners themselves who are leaving the centre in the evening sooner than the tourists. Within a month after these attacks, it has been estimated that terrorism cost UK tourism industry in excess of 300 million.According to U.S Department of state (2002) terrorist select businesses for attack compare to other targets?. The most kind of attack is bomb blast, although armed attacks and kidnapping are also some kinds of terrorist attacks. According to Counc il of Foreign Relations (2002) report, the majority of victims in terrorist attack are civilians and the comparatively large number of business may not prepare to face these kinds of risks?. Managers and decision makers remain confident somewhat handling unexpected risk. However the scenario has changed as it was at the time of terrorist attack in 9/11. Kunreuther et al (2003) cited that during the days of terrorist attacks in 9/11 a parkland tone came into mind of people that it could be me. But with the passage of time this may give way to may be it leave behind not me conterminous time. This kind of behaviour is more(prenominal)(prenominal) common now a day in south Asia. But it is a common thinking that it is exceedingly short for terrorist that to attack any where in the world. Even in low cost and low tech attacks terrorists achieve to disrupt the world economy. later the September 11 terrorist attacks many UK international organisations demand badly affected legally because new laws introduced and they struggle to salve up with new rules and regulations enforce by international community in the effort to prevent raise terrorist attacks. Anne Slaughter (2005) cited that new international laws restrict the companies for shipping goods crossways international borders and requires them to keep proper track of their activities. The anti terrorist laws have made very complicated for organizations to conduct their business activities across the international borders as a result many organisations have restructured theirs companies to yield them to meet demands of international anti terror laws. Another major issue that effect the international organizations is security and they have to invest huge amount of money to improve both internal and external security. External security is most important because terrorist target organizations to achieve their targets. Internal security also hire to improve to escort that organisation have financial ete rnalises, employees records and catch that employees do not have any criminal backgrounds or involve in terrorist activities in the past. It is life-sustaining for all organizations that they protect themselves and their stakeholders from terrorist activities. The international organizations should not underestimate the impact of terrorism because they make billions dollars each year and admit employment millions of people around the world. In this modern era, it is very easy for terrorist to attack international organizations in such a way that they would vacate them from operating in an powerful manner. It is very difficult to explain, why terrorism has become the major caper for big and international organizations.Modern terrorism is particularly onerous, because of characteristic of its impact. The impact of terrorism on macroeconomic is crucial, customers impression themselves in stress and some kind of continuous fear which definitely effects the spending patterns. ma nagerial behaviour in macro economy also feels consequences of terrorism. Media have its bouncy role in ending fear among the society but very often it fails. Many of times, because of the irresponsible insurance coverage it generates scenes of ever present porta of terrorist act. According to Crenshaw (1990) the new and fastest ways of communication allow people to know about(predicate) happens in the other part of the world within minutes about any terrorist attack. On the other hand terrorist groups are adopting the latest techniques to communicate with each other and even sometime exactly for spreading fear with in the precise community to achieve their targets. Czinkota et al (2004) cited that terrorist also using old tralatitious ways to communicate which are unable to penetrate. The latest ways of menu system gives terrorist groups better way to move around.The impact of terrorism can be calculated from a number of ways. According to Czinkota et al (2004) the micro le vel investigate is a moderate degree of search. It help to go bad effects of terrorism on specific regions, value chain or cross industry level, but can be determine and turn out more specifically than those of macro level. When terrorist events happens if effects businesses direct and indirect way and disrupt the economic process. To make the effects of the terrorist activities stronger terrorist groups try to make businesses their direct targets. Business are more attractive target for those groups as their charge is everywhere and their aftermaths are more deep on society and on the economics.2.1 conclusionTerrorism effects business activates deeply. This threat compel or so every part of business which cause decline in the profit of firm and on the other side the whole economy has to bear the cost of every maven act of terrorism. According to LCCI (2005) report, after 9/11 terrorist attacks, majority of organizations fear high risk of terrorist attacks and they have di saster plan in straddle to deal with uncertainty.As globalization integrates international organizations and financial markets, events like terrorism which spurn economic uncertainty have increasingly international consequences. Terrorism causes unpredictable political and economic consequences, infuses the in the public eye(predicate) with fear and prevents the free flow of capital, labour, and free market principles. Because of their disastrous impacts, occurrences of terrorism have serious implications on the performance of international and UK organizational. Immediate responses are felt in financial markets and the effected industry sectors. These sustained reactions can be observed through macroeconomic impacts, economic policy responses and investor confidence. As world move towards more liberal economies and democratic political structures, organizations must(prenominal) have the ability to line up and respond to terrorist events. In order to do so, decision makers and policy makers need a more breeze through personation and understanding of the deleterious effects of terrorism on organization.3. explore methodologyThe main proposed research ruleology is unessential research which is based on the critical and comprehensive digest of the existing promulgated literature colligate to the specific area of research. Books, published journal articles, published research reports, surveys, organizational records, soft research and net formulate (websites and search engines) allow for be used to collect standby sources selective information. I think these sources go forth help me to complete my research work.I will use all the above mentioned auxiliary winding research methods for my research work and I am highly elicit to use the deductive method because it is more logical and reliable way to prove my research. Moreover I will use both quantitative and qualitative techniques to critically consider my collected entropy and to reach the conclusion. But in this research work, I will prefer to use more qualitative method of info charm. According to Lincoln and Guba (1985) a qualitative method captures a more complete picture of individual lived pose instead of a undertake perspective of generalizations. The qualitative entropy brook me an opportunity to study the substantial of the recent or more removed past to gain the more insights information for methodological and theoretical purposes.3.1 Advantages of substitute(prenominal) research methodologyThis kind of research helps in examining large graduated table trend.It is easy to accessible so detective can consume most of its time in critically analysing entropy rather than collecting it. sometime elementary selective information collection is not necessary for the research, because of the available substitute(prenominal) coil selective information is completely satisfactory to draw a conclusions and answers of the questions and sufficient for work out problem.The collection of secondary selective information is far cheaper than the collection of primary data. For the same level of research cipher secondary research definitely gives relatively more information than the primary research can give.The time utilisation is much less in the collection of data and conducting results in simile with the primary research.The results obtain from secondary source of information may more precise than the result obtain from the primary data collection. It may not happen all the time but if research is about at large scale.3.2 Problems of Secondary questionIn secondary research the researches have to be careful about authenticity of secondary resources. Because at the same type of data or idea two different types of department or persons have different type of opinion.Some time bodily available for research is withal old and out dated, so it may difficult for researcher to reckon results.The source of the data and existent may not reliable each time, so it may impact the dependability and authenticity of results of the research.Sometimes secondary research has lack of firmness of perspective.If data and material collected from non authentic sources it is difficult to check its deflectness and inaccuracies.The published material and statistics often raise more questions than answers.3.3 LimitationsThere are some limitations the data may have and the problems that could trick up if these limitations are ignored. The verification of existing data is difficult. Secondary data can be general and vague and sometimes it may cause difficulties in decision making. It is possible that data could be out dated and the prove used to generate the secondary data maybe small. The data newspaper company may not be reputable. While keeping in mind those limitations of secondary data, I will use data for my research from reputable academic websites and published literature.3.4 ConclusionA use and search of secondary data s hould be antedate any primary research activity. Secondary data definitely helps to exercise and understand the problem and gives reasoned answers. The process of collecting secondary data for research is far cheaper and fast in compare with primary data at in some cases it could be more straight. There is invariably a need of valuation about data and its source before using it for research. Where possible it is better to take same data from different sources so the biasness and errors can be double check for the more accurate results.4. search Structure and inventThis research consists of six chapters. It begins with chapter 1, which reveals the need, aim and objectives for this research to be attained. Chapter 2 of my research will discuss the methodology, which enables me to fulfil the requirements of this research. Chapter 3 is an extensive and deep version of literature review about terrorism. Chapter 4 of this research will explore the impacts of terrorism on busines ses. Chapter 5 of this research evaluates performance and adaptation of sufficient strategy by management on different kind of business activities and also scrutinize the different business strategic views which a business can adopt for minimizing the effects of terrorism. at last chapter 6 of this research is the conclusion and recommendation chapter which will answer all the key questions, aim and objectives of this research seek.5. enquiry Implementation PlanResearch PlanWeek offshoot Date. 23-10-2010No. Of Weeks12345678910Background reading and literature reviewxxResearch design and planxChoice of methodologyx pull together dataxxData analysis and refinexxWriting up draftxxxEditing concluding cataloguexxProduce final documentx account passed to supervisor to readx6. Research EthicsWhile carrying out the research, the most important thing to keep in mind and suffice is the ethical considerations. And in my research work this is very critical and of flowering consideration. I will follow all the ethical considerations and guidelines. As my research work is based on secondary research, so what ever the secondary data I will use to achieve my research objectives, I will follow the all call and conditions of ethical considerations. Throughout my research I will practice money plant in processing and describe all the data, this will be my own work and I will not copy the other researcher data or work, I will not be bias in my research while collecting or processing the data. I will try my uttermost(a) to avoid the omissions and errors while analysing the data and will keep all the record of the data and their valid sources. I am fully aware that the buccaneering is a serious academic crime, so I will not plagiarise my research. I will recite all the citations and that will be fully referenced.Economic Effects of Terrorism in the UKEconomic Effects of Terrorism in the UKTerrorism has deep history science the cold war but this issue become most salien t after terrorist attacks in September 11 2001. This incident affected the UK and international business community in various ways. On one hand the world business community was affected financially, the other hand it suffers due to legal and security issues. The international business between countries was most seriously affected due to security and safety concerns and legal issue. Especially UK, US and other developed countries were compulsion to protect their territory and people on the cost of business with the rest of the world. Many businesses found themselves floundering financially in the months after the terrorist attack on world Trade Centre, while businesses located in world trade centre lost their personal and business locations. According to U.S department of state (2002) more than 3000 people of different nationalities were killed in the terrorist attacks only in the United States in September 11, 2001. The attacks were the conspicuous example of terrorism on global lev el. According to the overview of European commission (2001) this was the one of the major event in the past decades which diversifies the viewpoint and outlook of people around the world. Terrorism affects both the long term and short term perspectives of the businesses around the world. Czinkota (2002) cited that terrorism influenced long term karma of entire industries, for example tourism, retailing and manufacturing industries.In this competitive age, the business environment is changing dramatically. The international business has culminated in a global economy, with diverging cultures. But, there are strong protests against globalization echoing its destabilizing effects from many corners of the world. Terrorism can be seen, in substantial part, as a result of this backlash to the businesses. There are number of definitions of terrorism, in the world of Alexander et al (1979) terrorism is a threat or use of enforcement and inclemency to achieve a political goal by means of int imidation fear, and coercion?. In the present world context, the European Union (2001) define the terrorism relevant to international business in the following words. Terrorist offences are certain criminal offences set out in a list comprised largely of serious offences against persons and property which, given their nature or context, may seriously damage a country or an international organisation where committed with the aim of seriously intimidating a population or unduly compelling a Government or international organisation to perform or abstain from performing any act or seriously destabilizing or destroying the total political, constitutional, economic or social structures of a country or an international organisation?.In UK terrorism is not new phenomenon but businesses were highly affected due to September 11, 2001 and July 7, 2005 incident. Although the economic impact on UK businesses has not been detrimental as initially feared but it is very important not to diminish t he impact of even small unforeseen be can have on businesses in particular. However many UK businesses were relived that tangible impact of terrorist attacks had been very small but business confidence is the key and has inevitably been affected in short term. The biggest economic impacts of past twenty years terrorist attacks is the damage to confidence in the UK businesses and people. This study is another attempt to research and investigates the impacts of terrorism on the UK businesses activities and we will also discuss different approaches for reducing and handling the terrorism threats.1.1 Research AimThe aim of this research is to analyse and explore the economic effects of terrorism on businesses in the United Kingdom. The second part of this research is to critically analyse and recommend the most appropriate strategies for management to deal with the terrorist threats or scrutinize the different business strategic views to avoid and minimise the impact of terrorism on UK businesses.1.2 Research ObjectivesThis research has the following individual objectivesCritically analyse the economic impact of terrorism on UK organizations and the entire economy in UK.Evaluate the managerial performance in organizations, before, during and after the happening of the terrorist attacks and in uncertain environment.1.3 Research QuestionsWhat are the economic effects of terrorism on business?How to development strategy for managers or adopt a better approaches to deal with above mentioned issues?2. Literature ReviewIn this era terrorism is arguably one of the biggest threats to the business around the world. It can take many shapes and forms. The last twenty years have seen a dramatic rise in terrorism. Terrorism did not begin in 21st century after World Trade Centre terrorist attacks on 11 September 2001. The terrorism history is as old as humans willingness to use violence to affect politics. Europe, United States and other continents have a very long and sad his tory of terrorist attacks. In past century IRA in UK, ETA in Spain, Brigate Rosse in Itely, Rote Armee Fraktion in Germany, 7 November in Greece are the few worse examples of terrorist groups in Europe. In United States we remember the bombing in Oklahoma City in 1994, World Trade Center bombing in 1993 and 11 September 2001 terrorist attacks. But September 11 2001 attacks have changed the world, as UN Secretary General Kofi Annan has said, none of the issue that faced us on 11 September 2001 has become less urgent?. Now the terrorism has grown to an unprecedented limit and in multiplicity. As we know that, even terrorist without the use of weapons of mass destruction can kill thousands of people and destroy businesses (Gabriele G.S. Suder 2004). According to Blomberg et al 2004 terrorism is associated with a diversion of spending from investment to governments expenditure?. To fund these government expenditures, they borrow from foreign financial institutions and governments. The d evelop countries with less volatile currencies normally issue long term debts to cover the deficit and less developing countries confronting terrorism by government spending through sale of foreign reserves, printing more currency and increasing inflation. Gupta Clements (2004) reached the same conclusion, that the terrorist activities severe impacts on less develop countries than developed from monetary policy perspective.Terrorism has its massive effects on economy and business activities. It effects deleteriously on marketing strategies, buyer demand and market supply effect immensely. Most firms operating in the affected area gets impact from the thrust of government policies to quell terrorism. This kind of wide-spread results predict an escalate attractiveness of terrorism, as part for that group which assume to develop the core of businesses. It is impossible to secure all of the targets of terrorism at the same time. In the number of attacks done by small terrorist groups w ith least resources the loss was massive. If costs of an attack be measured by the loss which businesses faced, the businesses always paid far great amount than the cost to terrorist group. Hoffman (1998) cited that the cost of the bomb was not more than $400, which was the reason of the loss of $550 millions in the blast of World Trade Centre 1993. The amount which is sending to protect the world from terrorism is many billion dollars, while the terrorist cost nothing in front of it. This threat of terrorism attacks poses a continuous threat and create atmosphere of risk for the businesses. This risk itself creates extension for treatment of risk in management theories. The majority of management literature theories adopt term uncertainty as a factor of unpredictable environment which may influence the performance of firms in certain ways. The environment effected by terrorism also has a factor of unpredictability in it.Businesses internationally and locally particularly affected b y terrorism because when some thing happen it disrupt the supply chain and business activities in addition to interrupt information flows, and effects on the demand for industrial side as well as consumer side. Every year more than trillion dollars are spent on combating terrorism. This along with billons dollars lost in property damage, loss of human resources and decrease in key industries potential profit. It is a plague on global economy and affects on everyone from entire countries to all the way down to individual. Terrorism in recent years has sparked, increase in fear and demand higher level of security. The cost of terrorism can be broken down into number of areas and come down to direct effects, response costs and negative effects on key industries. For example, Manchester bombing was carried out by IRA in 1996 targeted the city centre infrastructure and economy caused widespread damage. According to the BBC News (2004), over 400 businesses within the half a mile of the bl ast were affected and 40% of which did not recover. Another example of terrorist attack on businesses is Baltic Exchange bombing 1992, which damaged the Exchange and surrounding buildings and caused 800 millions worth of damage. The latest terrorist attacks in UK was July 7 London bombing, which had massive effects on UK businesses. According to the LCCI (2005) report, business confidence in London had slumped to the lowest levels not seen since the start of Iraq war. Because, terrorist attacks disrupt supply chain and other business activities. Alexander (2004) says in his book Business Confronts Terrorism, terrorisms implication on business merits closer scrutiny given its relation to economic security. Terror metamorphoses business causing business to deal with current threats and craft plans to reduce future challenges. Terrorists weaken society and business through their manipulation of economic systems components?. Terrorism interrupts information flows and effects on the dema nd form both business and consumer side. This falling demand may have different outcomes which may comprises of losses of customers contracts, customer trust, reduces market share, decline in turnover and profitability and also result business failure. For example according to the LCCA report, UK tourism industry badly effected by July 7 terrorist attacks. The Guardians research shows that after July 7 Bombing, Londoners themselves who are leaving the centre in the evening rather than the tourists. Within a month after these attacks, it has been estimated that terrorism cost UK tourism industry in excess of 300 million.According to U.S Department of state (2002) terrorist select businesses for attack compare to other targets?. The most kind of attack is bomb blast, although armed attacks and kidnapping are also some kinds of terrorist attacks. According to Council of Foreign Relations (2002) report, the majority of victims in terrorist attack are civilians and the relatively large n umber of business may not prepare to face these kinds of risks?. Managers and decision makers remain confident about handling unexpected risk. However the scenario has changed as it was at the time of terrorist attack in 9/11. Kunreuther et al (2003) cited that during the days of terrorist attacks in 9/11 a common feeling came into mind of people that it could be me. But with the passage of time this may give way to may be it will not me next time. This kind of behaviour is more common now a day in south Asia. But it is a common thinking that it is extremely easy for terrorist that to attack any where in the world. Even in low cost and low tech attacks terrorists achieve to disrupt the world economy.After the September 11 terrorist attacks many UK international organisations have badly affected legally because new laws introduced and they struggle to keep up with new rules and regulations imposed by international community in the effort to prevent further terrorist attacks. Anne Sla ughter (2005) cited that new international laws restricted the companies for shipping goods across international borders and requires them to keep proper track of their activities. The anti terrorist laws have made very complicated for organizations to conduct their business activities across the international borders as a result many organisations have restructured theirs companies to allow them to meet demands of international anti terror laws. Another major issue that effect the international organizations is security and they have to invest huge amount of money to improve both internal and external security. External security is most important because terrorist target organizations to achieve their targets. Internal security also need to improve to ensure that organisation have financial records, employees records and ensure that employees do not have any criminal backgrounds or involved in terrorist activities in the past. It is vital for all organizations that they protect the mselves and their stakeholders from terrorist activities. The international organizations should not underestimate the impact of terrorism because they make billions dollars each year and provide employment millions of people around the world. In this modern era, it is very easy for terrorist to attack international organizations in such a way that they would stop them from operating in an effective manner. It is very difficult to explain, why terrorism has become the major problem for big and international organizations.Modern terrorism is particularly onerous, because of characteristic of its impact. The impact of terrorism on macroeconomic is crucial, customers feel themselves in stress and some kind of continuous fear which definitely effects the spending patterns. Managerial behaviour in macro economy also feels consequences of terrorism. Media have its vital role in ending fear among the society but very often it fails. Many of times, because of the irresponsible reporting it generates scenes of ever present possibility of terrorist act. According to Crenshaw (1990) the new and fastest ways of communication allow people to know about happens in the other part of the world within minutes about any terrorist attack. On the other hand terrorist groups are adopting the latest techniques to communicate with each other and even sometime just for spreading fear with in the specific community to achieve their targets. Czinkota et al (2004) cited that terrorist also using old traditional ways to communicate which are unable to penetrate. The latest ways of transportation system gives terrorist groups better way to move around.The impact of terrorism can be calculated from a number of ways. According to Czinkota et al (2004) the micro level research is a moderate degree of research. It help to analyze effects of terrorism on specific regions, value chain or cross industry level, but can be determine and examine more specifically than those of macro level. When ter rorist events happens if effects businesses direct and indirect way and disrupt the economic process. To make the effects of the terrorist activities stronger terrorist groups try to make businesses their direct targets. Business are more attractive target for those groups as their presence is everywhere and their aftermaths are more deep on society and on the economics.2.1 ConclusionTerrorism effects business activates deeply. This threat compel almost every department of business which cause decline in the profit of firm and on the other side the whole economy has to bear the cost of every single act of terrorism. According to LCCI (2005) report, after 9/11 terrorist attacks, majority of organizations fear high risk of terrorist attacks and they have contingency plan in place to deal with uncertainty.As globalization integrates multinational organizations and financial markets, events like terrorism which spurn economic uncertainty have increasingly international consequences. Ter rorism causes unpredictable political and economic consequences, infuses the public with fear and prevents the free flow of capital, labour, and free market principles. Because of their disastrous impacts, occurrences of terrorism have serious implications on the performance of international and UK organizational. Immediate responses are felt in financial markets and the effected industry sectors. These sustained reactions can be observed through macroeconomic impacts, economic policy responses and investor confidence. As world move towards more liberal economies and democratic political structures, organizations must have the ability to adapt and respond to terrorist events. In order to do so, decision makers and policy makers need a more complete picture and understanding of the deleterious effects of terrorism on organization.3. Research MethodologyThe main proposed research methodology is secondary research which is based on the critical and comprehensive analysis of the existin g published literature related to the specific area of research. Books, published journal articles, published research reports, surveys, organizational records, qualitative research and internet (websites and search engines) will be used to collect secondary sources data. I think these sources will help me to complete my research work.I will use all the above mentioned secondary research methods for my research work and I am highly interested to use the deductive method because it is more logical and authentic way to prove my research. Moreover I will use both quantitative and qualitative techniques to critically analyze my collected data and to reach the conclusion. But in this research work, I will prefer to use more qualitative method of data collection. According to Lincoln and Guba (1985) a qualitative method captures a more complete picture of individual lived experience instead of a narrow perspective of generalizations. The qualitative data provide me an opportunity to study the material of the recent or more distant past to gain the more insights information for methodological and theoretical purposes.3.1 Advantages of secondary research methodologyThis kind of research helps in examining large scale trend.It is easy to accessible so researcher can consume most of its time in critically analysing data rather than collecting it.Sometime primary data collection is not necessary for the research, because of the available secondary data is completely suitable to draw a conclusions and answers of the questions and sufficient for solving problem.The collection of secondary data is far cheaper than the collection of primary data. For the same level of research budget secondary research definitely gives relatively more information than the primary research can give.The time consumption is much less in the collection of data and conducting results in comparison with the primary research.The results obtain from secondary source of information may more precise t han the result obtain from the primary data collection. It may not happen all the time but if research is about at large scale.3.2 Problems of Secondary ResearchIn secondary research the researches have to be careful about authenticity of secondary resources. Because at the same type of data or idea two different types of department or persons have different type of opinion.Some time material available for research is too old and out dated, so it may difficult for researcher to interpret results.The source of the data and material may not reliable each time, so it may impact the reliability and authenticity of results of the research.Sometimes secondary research has lack of firmness of perspective.If data and material collected from non authentic sources it is difficult to check its biasness and inaccuracies.The published material and statistics often raise more questions than answers.3.3 LimitationsThere are some limitations the data may have and the problems that could arise if th ese limitations are ignored. The verification of existing data is difficult. Secondary data can be general and vague and sometimes it may cause difficulties in decision making. It is possible that data could be out dated and the sample used to generate the secondary data maybe small. The data publisher company may not be reputable. While keeping in mind those limitations of secondary data, I will use data for my research from reputable academic websites and published literature.3.4 ConclusionA use and search of secondary data should be preceding any primary research activity. Secondary data definitely helps to solve and understand the problem and gives valid answers. The process of collecting secondary data for research is far cheaper and quicker in compare with primary data at in some cases it could be more accurate. There is always a need of evaluation about data and its source before using it for research. Where possible it is better to take same data from different sources so th e biasness and errors can be double check for the more accurate results.4. Research Structure and DesignThis research consists of six chapters. It begins with chapter 1, which reveals the need, aim and objectives for this research to be attained. Chapter 2 of my research will discuss the methodology, which enables me to fulfil the requirements of this research. Chapter 3 is an extensive and deep interpretation of literature review about terrorism. Chapter 4 of this research will explore the impacts of terrorism on businesses. Chapter 5 of this research evaluates performance and adaptation of suitable strategy by management on different kind of business activities and also scrutinize the different business strategic views which a business can adopt for minimizing the effects of terrorism. Finally chapter 6 of this research is the conclusion and recommendation chapter which will answer all the key questions, aim and objectives of this research seek.5. Research Implementation PlanResea rch PlanWeek beginning Date. 23-10-2010No. Of Weeks12345678910Background reading and literature reviewxxResearch design and planxChoice of methodologyxGathering dataxxData analysis and refinexxWriting up draftxxxEditing final documentxxProduce final documentxDocument passed to supervisor to readx6. Research EthicsWhile carrying out the research, the most important thing to keep in mind and practice is the ethical considerations. And in my research work this is very critical and of prime consideration. I will follow all the ethical considerations and guidelines. As my research work is based on secondary research, so what ever the secondary data I will use to achieve my research objectives, I will follow the all terms and conditions of ethical considerations. Throughout my research I will practice honesty in processing and reporting all the data, this will be my own work and I will not copy the other researcher data or work, I will not be bias in my research while collecting or proces sing the data. I will try my utmost to avoid the omissions and errors while analysing the data and will keep all the record of the data and their valid sources. I am fully aware that the plagiarism is a serious academic crime, so I will not plagiarise my research. I will quote all the citations and that will be fully referenced.