The process of globalization has started in order to offer every country in the world the opportunity to develop its trade

The process of globalization has started in order to offer every country in the world the opportunity to develop its trade, and business, through a global market, through liberalisation. Along with the opportunities and the benefits it can offer to the world, globalisation also hides some great threats. One of its greatest threats is terrorism, in its new globalised form that has initially revealed its face during the 9/11, 2001 attacks in the USA.
This paper aims to explore the opportunities and risks of globalization within the business world, while also revealing the affects of terrorism on decision making within businesses, and the measures firms could take against it. Taking the events of 9/11, there will be an analysis of the methods that terrorists have found in order to act against globalization, and how these affect the business, political and economic environment of many countries all over the world. This research will include a theoretical background of the methods terrorists use to act against globalisation and the businesses operating within it.

Globalisation has offered great opportunities for every business no matter where it is located. Businesses have the opportunity through the open markets to “communicate efficiently and effectively with their partners, suppliers, and even customers” (Mourdoukoutas, 2011). Simultaneously businesses seem to have improved their administration of their “suppliers, inventories, as well as their distribution network” (Mourdoukoutas, 2011). All the manufacturers, from any country in the world can sell their products easily and without delay in distant markets, just like they do in their local markets. For example Intel (NASDAQ:INTC), Apple (NASDAQ:AAPL) and Cisco (NASDAQ:CSCO) are able to sell their high tech gear as easily in New York, as they do in Tokyo where the bases of the companies are located. (Mourdoukoutas, 2011)
Globalisation is considered to be the “worldwide movement toward economic, financial, trade and communications integration” (, 2018). The term globalisation entails “the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world” (, 2018), which includes the free transfer of capital, supplies, and services in all the countries of the world. Nevertheless, in this term the unrestricted movement of labour is not included, while according to the opinions of some economists, it is considered that is could harm “smaller or fragile economies if applied indiscriminately” (, 2018).
One of the most important advantages of globalisation is that it offers to businesses from all over the world easy credit and rising leverage, since the flow of money becomes easier across the nations. There will be a detailed discussion of globalisation and the businesses on the first chapter of this thesis.
The purpose of this research is to identify the methods that are being used by terrorists against globalisation and the global economy and against the businesses operating within a global environment. Consequently there will be a detailed analysis of the meaning of an international business in the first chapter of this paper, through the use of articles, books and websites.
In order to understand the meaning of global economy, we should look through the meaning of economic globalisation, which is related with it. On the one point of view, there are the individuals who “see underlying structures of capitalism (as a mode of production or exchange) shaping experiences that are fundamentally universal” (Dicken et al., 2001). On the other point of view, “there is the orthodoxy of contemporary macroeconomics that sees economic globalisation as the extension and intensification of disembodied markets, in which individuals, firms, states and regions compete for investment flows and export markets” (Dicken et al., 2001). There will be a reference to the economic growth and development of the global economy in the first chapter of this paper, in the attempt to clearly comprehend the meaning of the global economy. Furthermore, the meaning of global environment that is being used for the purposes of this thesis relates to the worldwide environment that every business is operating and competing within.
The second chapter will include an analysis of terrorism, and a reference to the 9/11/2001 attacks in the USA, and the affects they had on the global economy and the businesses.
Next, on the third chapter, there will be a thorough analysis of the ways that terrorism could act against globalisation and businesses by referring to the role of media, the vulnerable aspects of global businesses, global capitalism, and the indirect effects of terrorism to global firms. The September 11, 2001 attacks will also be analysed within this chapter, for the purposes of indicating a clear example of the way terrorism could act against globalisation and businesses.
The fourth chapter of this thesis will include an analysis of the process of decision making in businesses, and the ways that terrorism could affect those. In addition, there will be an analysis of the defence mechanisms that business could use on order to act against terrorism. This chapter will also include an analysis of the findings of a personal research that was performed in 20 businesses operating globally and regionally. The aim of this research is to identify if these businesses were affected by terrorism, if they were able to defend themselves and what were the means that these businesses have used in order to defend themselves from a terrorist attack, as well as if they have the means of predicting one in the future.
This paper intends to help identify the ways that terrorism could affect every business; especially businesses operating in a global environment. At the same time, it aims to guide every business during the process of identifying and adopting the most effective methods of defence against a terrorist attack.
This paper intends to help identify the ways that terrorism could affect every business; especially businesses operating in a global environment. At the same time, it aims to guide every business during the process of identifying and adopting the most effective methods of defence against a terrorist attack.
1. Globalisation and Businesses
Andre Gunder Frank, a German historical economist, suggests that globalisation has made its appearance centuries ago at the time trade and market integration started growing between the Summer and Indus (around 3000 BC). (C., 2013) Later on during the Hellenistic age, trade between China and Europe grew, “with further increases in global market convergence occurring when transport costs dropped in the sixteenth century and more rapidly in the modern era of globalisation”. (C., 2013)
According to Jean Baudrillard (2003), a great philosopher of this century, “globalisation is the globalisation of technologies, the market tourism and information. Globalisation as an idea it seems “irreversible”, and “has constituted itself as a system of values on the scale of Western modernity, which has no equivalent in any other culture” (Baudrillard, 2003).
The two meanings of globalisation mentioned in the previous paragraphs contradict each other. The historical economist plainly describes globalisation as the process of trading between countries that has been occurring many centuries ago. The philosopher on the other hand conceives globalisation as an idea that mirrors the Western civilisation, which differs from any other culture. Andre Gunder Frank, is only visualising globalisation through an economic perspective, were trade between countries is its main characteristic. On the other hand, Baudrillard is visualising globalisation from a philosophical perspective, where the idea of capitalism has been the foundation of it. The philosophers’ point of view is based on the efforts that the Western civilisation has been making in order to concur the world, and that globalisation (through global capitalism) is based on more than simply trading between countries. The second chapter of this research project includes a detailed reference to the global capitalism and the efforts that the Western societies have made in order to spread this idea throughout the world.
In order to comprehend the meaning of globalisation and economic globalisation, the definition of the international business is necessary to be mentioned at this point. According to Katsioloudes and Hadjidakis (2007), “international business is all commercial transactions –private and governmental – between two or more countries”. (Katsioloudes and Hadjidakis, 2007, p.9) These types of transactions are used by companies in order to gain more profit, while they could also be used by governments too. International business has managed to take over the most of the “world’s total business”, and it continues growing. (Katsioloudes and Hadjidakis, 2007, p.9)
Moreover, most managers seem to accept the term of international business to be is “a business whose activities are carried out across national borders. This definition includes not only international trade and foreign manufacturing, but also the growing service industry in areas such as transportation, tourism, advertising, construction, retailing, wholesaling, and mass communications.” (Ball et al., 2013, p.28) International businesses are very common today, as well as the “multidomestic companies”, “global companies”, and “international companies”. (Ball et al., 2013) Their terms are as follows.
i. “A “multidomestic company” is an organisation with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences”. (Ball et al., 2013, p.29)
ii. “A “global company” is an organisation that attempts to standardise and integrate operations worldwide in most or all functional areas.” (Ball et al., 2013, p.29)
iii. “An “international company” is a global or multidomestic company”. (Ball et al., 2013, p.29)
International business is using the following definition for the economic globalisation (that is essentially referred at as global economy) – “the tendency toward an international integration of goods, technology, information, labour, and capital, or the process of making this integration happen” (Ball et al., 2013, p.15) One of the first articles that has referred to globalisation was written by Theodore Levitt in an article at Harvard Business Review where he claimed that “new technologies had ‘proletarianized’ communication, transport and travel, creating worldwide markets of standardised consumer products at lower prices”. (Ball et al., 2013, p.15) He also argued that the global organisations were the ones that would shape the future, by adopting new strategies “as if the entire world (or major regions of it) was a single entity; such an organisation sells the same things in the same way everywhere” (Ball et al., 2013, p.15).
Globalisation in businesses includes the following:
? Globalisation of firms – Global firms are the firms that come from a certain territory, and through the use of corporate groups and structures, they have the ability to broaden their operations to other territories all over the world. (Braithwaite and Drahos, 2004)
? Globalisation of markets – Global markets give the ability to sellers and buyers from any single country of the world to meet (physically, electronically, or through representatives) with buyers or sellers from any other country of the world, in order to carry out transactions. One example of global markets are the financial markets. (Braithwaite and Drahos, 2004)
? Globalisation of regulation – Globalisation of regulation includes “the spread of some set of regulatory norms” (Braithwaite and Drahos, 2004, p.8), without meaning that these regulations are necessarily harmonised. “Most states now have patent law (globalisation), but there are many differences in the level of rules between those systems, for example in the scope of what can be patented”. (Braithwaite and Drahos, 2004, p.8) All these meanings of globalisation are used in this chapter in order to inform the reader of the different opinions and meanings globalisation can have according to different scholars.
According to Holm and Sorensen, globalisation is defined as the “intention of economic, political, social and cultural relations across borders” (Holm and Sørensen, 1995, p. 1) Any phenomenon could be part of globalisation even if it does not negotiate with the whole globe. (Braithwaite and Drahos, 2004) This definition of globalisation is the most suitable one for the purposes of this research, although it contradicts with the ones on the previous paragraphs. This is because this definition of globalisation clearly states that any phenomenon, like terrorism for example, no matter where it occurs, it can affect businesses and trade in the whole globe.
A complicated structure of investment streams has brought to light the economic development and progress in the global economy that we are familiar with today. This is the result of the business ventures that have come together, along with the production procedure that has transformed, and the implementation of the niche market approach, before globalisation. (Porter, 1998) In addition, the economic growth has also called for the efficient incorporation of the state-of-art-technologies in the field of communications and information, so that the competitive advantage could be developed within the international trade environment. The result of all the above has been the essential reformation of the economic society. Innovation has gained a catalyst role, which acts as a guide to the acknowledgement of the needs of the economic growth being an essential postulate of the recent global economy. Moreover, every country’s ‘human resources’, in accordance with the “unique economic value of its human capital endowment” has also gained a key role that also influenced the population’s technical skills and achievement in education. This is also considered to be a necessary requirement for making the new economy more powerful and facilitating the integration of labour in industries that are based on knowledge. The constant improvement of skills and the life’s long learning, along with the reformation of the structure of the work place, have turned out to be crucial factors that shape every country’s current economic profile. The “knowledge based economy” has become the main force that drives any country’s technology, human capital, development, as well as research, which altogether have become part of the increasing speed of productivity levels and the overall economic performance of a nation. It could be suggested that the “fuel of the new economy is the technology and its currency is the human capital” (Passaris, 2006). In other words, technology could be considered to be the new economy, while its market has been replaced by the virtual market of the internet. Competitive tax levels, research and development on investment, an emphasis on training and education, as well as industrial clusters of excellence altogether lead the way towards worldwide niche markets of the emerging global economy, while being also necessary to provide every business with global opportunities. (Passaris, 2006)
The objective of globalisation is to promote the open market and encourage companies from any nation to become international businesses and/or international companies. International trade has been operating from many years ago as mentioned earlier on. The new media and the means of communication that are available today have offered to businesses the opportunity to interact and trade with other nations very easily.
Every business operates in a certain environment. The term environment as applied here indicates all the “forces influencing the life and development of the firm”. (Ball et al., 2013, p.30) These forces could be either internal or external (also called uncontrollable forces). The external forces are the ones that are discussed in detail for the aim of the assignment.
The external or uncontrollable forces cannot be directly controlled by the company’s management, although it can “exert influence” like “lobbying for a change in a law and heavily promoting a new product that requires a change in a cultural attitude” (Ball et al., 2013, p.30).
The external forces include the following:
? Competitive – “kinds and numbers of competitors, their location, and their activities”
? Distributive – “national and international agencies available for distributing goods and services”
? Economic – “Variables (such as gross national product GNP, unit labour cost, and personal consumption expenditure) that influence a firm’s ability to do business.”
? Socioeconomic – “Characteristics and distribution of the human population”.
? Financial – “Variables such as interest rates, inflation rates, and taxation”
? Legal – “The many foreign and domestic laws governing how international firms must operate.”
? Physical – “Elements of nature such as topography, climate and natural resources.”
? Political – “Elements of nations’ political climates such as nationalism, forms of government, and international organisations.”
? Sociocultural – “Elements of culture (such as attitudes, beliefs, and opinions) important to international managers.”
? Labour – “Composition, skills, and attitudes of labour.”
? Technological – “The technical skills and equipment that affect how resources are converted to products.” (Ball et al., 2013, p.30)
All the external forces could appear as a liability for a company. Terrorism could affect some if not all of these forces and have a negative impact on any type of firm, national or international.

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2. Understanding Terrorism and global capitalism
Terrorism in general has been used as the means that challenges the stability of any society, as well as the peace of mind of every individual within the society. Extremism is generally believed to be the driving force that leads people to become terrorists. According to Martin (2010), “extremism is the quality that is radical in opinion, especially in political matters; ultra; advanced”. (Martin, 2010, p. 4) One of its main characteristics is “the intolerance toward opposing interests and divergent opinions” (Martin, 2010, p. 5), and is considered to be the main force that drives to a terrorist behaviour. “Extremists who cross the line to become terrorists always develop noble arguments to rationalise and justify acts of violence directed against enemy nations, people, religions, businesses and other interests”. (Martin, 2010, p. 5) In other words, terrorists are considered to be the individuals who use violence in order to represent their extremist beliefs.
It is generally believed that terrorism is
? “politically motivated violence,
? Usually directed against ‘soft targets’ (like civilian and administrative government markets)
? With an intention to affect (terrorise) a target audience” (Martin, 2010, p. 5)
Terrorist are most frequently initiating attacks against the societies, and parts of these, that symbolise the cause they are opposing to. In many European countries (like Germany and the United Kingdom) as well as parts of the United States, we can find numerous groups or individuals who act out in a violent way in order to encourage an agenda, which intents to ‘purify’ the society, in order to create “ethnically cleansed communities”. The main reason that terrorists attack countries like the ones mentioned above is because they represent the Western civilisation, and terrorists have been trying to oppose to its notion, like mentioned in the previous chapter. “Behind each incident of terrorist violence is some type of deeply held belief system that has motivated the perpetrators.” (Martin, 2010, p. 37-38) Intolerance is the main characteristic of these belief systems, which are, basically, considered to be extremist systems.
2.a Types of Terrorism
Some of the types of terrorism are:
? State terrorism – which indicates the states that “declined to use terrorism as an instrument of statecraft”, and in that way they “are often able to control the parameters


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