Effect of Terrorism on the International Business in Pakistan

Abstract

Terrorism has both direct and indirect effects on international business (IB). It could be noted that as government spends much on the security in the country, businesses have become vulnerable to terrorist targets, with important implications for the operations and performance of multinational firms. This paper examines the effects of terrorism in relation to International Business. Random sampling method was used to carry out the research work. A pilot study through test-re-test method was also carried out to test the reliability of the instruments with Pearson's product moment correlation coefficient with the following result 0.72 i.e. 72% for balance of payment, 0.68 i.e. 68% for foreign exchange earnings, 67.12% i.e. 67% for foreign investors while 0.83 i.e. 83% for financial market. Four hypotheses were formulated, All the four hypotheses were analyzed through the use of Statistical Programme for Social Sciences (SPSS)-All the tested hypotheses were significant, showing that there is a significant relationship between terrorism and international business. Some recommendations made includes the following; there should be public enlightenment so that terrorist will realized that they are agent of economic destruction, provision of job opportunity for the young ones, laws that create financing of terrorism (FT) offenses should be enacted and freezing, seizure, and confiscation of the proceeds of crime, terrorist funding should be done and laws, regulations, or other enforceable means that impose the required obligations on financial institutions and designated non-financial business and professions and there should be provision of an appropriate institutional or administrative framework and laws enable authorities to discharge their duties as expected of them.