Globalization, Terrorism, and the Economy
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This chapter introduces the ideas of globalization and terrorism with definitions. It then explores the previous literature that deals with these topics as well as the idea that terrorist groups will launch attacks to weaken the economy. The discussion will focus on previous studies of the effects of terrorism on tourism and foreign investment. The two basic hypotheses derived in the chapter are that globalization will lead to social disruptions that then lead to terrorism, and that terrorism in turn will have negative effects on tourist visits and foreign investment stocks.