The Hidden Cost of Ubiquity: Globalisation and Terrorism
2003-10-28
Research Paper
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Terrorism is not a natural hazard outside the range of corporate decision-making. Simple micro-economic analysis shows how globalisation changed the supply of terrorist attacks and the costs for tolerating terrorist hazard. Approaches developed in organizational strategy help to single out three strategic decisions directly affecting the vulnerability of firms in a globalised world: exposure, geographical spread, and organisational form. The analysis suggests that the gains from ubiquity, leanness in production, and long-term commitment need to be adjusted for the terrorist hazard involved.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- M : Business Administration and Business Economics; Marketing; Accounting
- L2 : Firm Objectives, Organization, and Behavior
- M10 : Business Administration: General
- F23 : Multinational Firms; International Business
Automatically Extracted Terms
- terrorism
- attack
- strategy
- management
- globalisation
- hazard
- exposure
- damage
- business
- effect
- asset
- journal
- production
- management journal
- group
- value
- knowledge
- spread
- country
- target
