Globalisation and Terrorism:
Impact on Global Business Environment
Table of Contents
2.0 CAUSE-AND-EFFECT BETWEEN GLOBALISATION & TERRORISM
2.1 Economic Inequality
2.2 Cultural Homogeneity
2.3 Digitization of Money
2.4 Volume of International Trade
2.5 Larger Victim Base
3.0 IMPACT OF TERORISM ON GLOBAL BUSINESS ENVIRONMENT
3.1 Movement of goods
3.2 Movement of people
3.3 Movement of money
3.4 Movement of information
4.0 OPERATIONAL RESILENCE BY INTERNATIONAL BUSINESSES
4.1 Management’s Role: Decentralisation of company’s operations
4.2 Operation’s Role: Building an Agile Supply Chain
4.2.1 Greater transparency
4.2.2 Alternative vendors and distribution centres
4.2.3 Enhanced collaboration
4.3 Human Resource’s Role: Education and Evacuation
4.4 Marketing’s Role: Market Selection and Contingency Marketing Plan
Globalisation started with the rise of civilisation. Centuries down the road, we are the results of this global phenomenon. However, the 21st century globalisation undergoes a paradigm shift with a new reality created by the September-11 attacks. While terrorism is not new, the internationalisation of terror group and their activities has now ruled the world by fear. An unfair global equilibrium, cultural homogeneity created by globalisation (or ‘western capitalism’) gives rise to the animosity of radical groups against the western power. Boosted by the ease which terror attacks can be carried out using technology has made the world and global business environment very susceptible. With new economy sanctions and security measures introduced to counter terrorism, businesses are required to dedicate more time and resources in meeting these new regulations. On top of that, businesses have to deal with a potential disruption in their flow of goods, people (staff), money and information in the event of a terror attack. While terrorist attacks form part of a larger geopolitical agenda out of control by businesses, practical measures can be put in place to protect the business from being a likely target and have responsive measures that will reduce the impact of terror attack in the event of one. Such measures require the effort of the different functionalities of a business including that of the management, operations, human resources and marketing. In an overview, the following diagram reflects the flow of the essay and highlights the recommendations to this research.
Terror attacks and new security measures impact
Globalisation induces Terrorism
Flow of essay – ‘Terrorism and Globalisation: Impact on Global Business Environment’
In the context of Globalisation, terrorism arises
Globalisation is broadly defined as the ‘shifting towards a more integrated and interdependent world economy’ (Hill, 2009). From the time humans have established civilisations, there has been the need and desire to trade (knowledge, ideas and goods) which in turn has inspired exploration and discovery of new lands. Some people trace the origins of globalisation to the discovery and conquest of these new lands. In the history of Europe and Asia going back 2000 years or more there are countless examples of civilisations rising and falling, and at some point when these civilisations reached their zenith or glory years, they may well have brought nearby regions closer together through trade and conquest. This could therefore be considered as a starting point to the more integrated world we know today.
Together with the rise of civilisation, terrorism takes shape as far back as history is first recorded. Terrorism is not new. 1894, French President is assassinated by an Italian anarchist. 1897, Empress Elizabeth...
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United States National Counterterrorism Centre, 2009, 2008 Report on Terrorism, (M Leiter, Director), National Counterterrorism Center, Washington
Vlcek, W 2008, ‘Development vs
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