The Security–Business Nexus
Edited by Gabriele G.S. Suder
Chapter 8: Global Investment and Trade Flows: A Framework for Understanding
8. Global investment and trade ﬂows: a framework for understanding John McIntyre and Eric Ford Travis ‘. . . quand on cède à la peur du mal, on resseut déja le mal de la peur.’ Pierre Augustin Carol de Beaumarchais (Barbier, Acte II, Scène 2) INTRODUCTION This chapter focuses on the large-scale impacts of terrorism on the international business environment and globalization. It will attempt to determine the more speciﬁc eﬀects on international trade or the physical movement of goods across boundaries, and foreign direct investment (FDI), covering regional aspects and seeking to distinguish diﬀerential impacts on developed and developing countries. Additional attention is paid to reactive and proactive government policies enacted and how they too can equally aﬀect the global economy. Time is utilized as a central guiding concept to consider the variegated impacts. Portfolio investment is mentioned in passing, as it is best left to specialists able to deal with the intricacies it entails. Nor does the chapter attempt to correlate an exhaustive taxonomy of the various forms of terrorisms with transnational corporate strategies nor does it delve to any depth to the international ﬁrm’s choice of market entry strategy, or various conﬁgurations of the global supply chain as a function of a global environment increasingly concerned with potential terrorist threats on the ﬁrms’ activities in home or host country settings. 8.1 SHOCK WAVES The terrorist attacks directed at the United States and the symbols of globalization on September 11, 2001 did more than...
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