A study on Terrorism Risk in Multinational Corporations

Abstract

This paper discusses the circumstances that may prompt fresh thinking about risk and its management at the policy and MNCs (multinational corporations) levels. How do MNCs deal with the strategic management risk associated with attacks like 9/11, which affects their decisions regarding internationalisation and cross-border business operations? It has been noted that multinational corporations (MNCs) are expanding the concept of political risk. Expanding the traditional risk-return analysis is recommended to include the impact of terrorism on investment, location, logistics, supply-chain, and other performance-linked decisions across the global value chain. The paper accomplishes this primarily through analysis and differentiation of the most vulnerable links in firms' value chain, for which adjustments need to be made in the face of terrorism threat, act, and aftermath. In an age of global risk and uncertainty, this paper seeks to advance comprehension of international management.