The Hidden Cost of Ubiquity: Globalisation and Terrorism
AbstractTerrorism 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.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2003-062-ORG.
Date of creation: 28 Oct 2003
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multinationals; terrorism; internationalisation; deterrence; organizational strategy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-12-07 (All new papers)
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