Terrorism Case

Firstly, the economy activity will be affected by terrorist attacks. According to Luechinger, the consequences of terrorism which the high unemployment rate, the reduction of foreign investment and the decline of tourism are indicators that the terrorist attacks have large negative impacts on economic outcomes (2007, 20). For example, Luechinger states that the recession of the US economy was caused by the 911 attacks in 2001 year. The GDP growth rate of US dropped dramatically from 4.2% to 0.9% between 2000 and 2001, the US stock markets fell rapidly and the larger numbers of retail sales were shot down in the short run. In consequence, thousands of citizens lost their jobs and the unemployment rate increased to 6.5% in 2003 (2007, 21). Also, the investment environment of a nation was effected by the terrorism. Based on a report of Terrorism and the World Economy, due to the September 11 th attacks, the number of investors in US moved their assets to other more safely country and resulted in the decreasing in the amounts of foreign direct investment of US. For instance, the foreign direct investment inflow decreased sharply from 15% to 5% between 2000 and 2003(2007, internet).Moreover, tourism is affected by the terrorism as well. According to Kubarych, pointed out the terrorism is a significant factor that reduces government revenue generated from tourism. For example, hundreds of travelers were injuries in the riot of Tibet and lost millions of dollars in tourism because of the riot (2009, internet). Therefore, the negative change of economy activities can be considered as an impact of terrorism.

Secondly, Psychological impacts on individuals are also the main issue caused by terrorism. The event of death will be occurring inevitably by the terrorism on society. This will lead to the separation of family or friends permanently. According to Brooks, the severe distress and psychological suffering of individuals were caused by the 911 terrorist attacks

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