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The Hidden Cost of Ubiquity: Globalisation and Terrorism

Listed author(s):
  • Krug, B.
  • Reinmoeller, P.
Registered author(s):

    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.

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    File URL: https://repub.eur.nl/pub/993/ERS%20062.pdf
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    Paper 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 ERIM Report Series Research in Management with number ERS-2003-062-ORG.

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    Date of creation: 28 Oct 2003
    Handle: RePEc:ems:eureri:993
    Contact details of provider: Postal:
    RSM Erasmus University & Erasmus School of Economics, PoBox 1738, 3000 DR Rotterdam

    Phone: 31-10-408 1182
    Fax: 31-10-408 9020
    Web page: http://www.erim.eur.nl/
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    1. Enders, Walter & Sandler, Todd, 1996. "Terrorism and Foreign Direct Investment in Spain and Greece," Kyklos, Wiley Blackwell, vol. 49(3), pages 331-352.
    2. Helfat, C.E. & Raubitschek, R.S., 2000. "Product Sequencing: Co-Evolution of Knowledge, Capabilities and Products," Papers 00-1, U.S. Department of Justice - Antitrust Division.
    3. Enders, Walter & Sandler, Todd, 2000. "Is Transnational Terrorism Becoming More Threatening? A Time-Series Investigation," Staff General Research Papers Archive 1823, Iowa State University, Department of Economics.
    4. Drakos, Konstantinos & Kutan, Ali M., 2001. "Regional effects of terrorism on tourism: Evidence from three Mediterranean countries," ZEI Working Papers B 26-2001, University of Bonn, ZEI - Center for European Integration Studies.
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