Terrorism Is a Major Issue Worldwide and Its Negative Effects

question 55

Multiple Choice

Terrorism is a major issue worldwide and its negative effects on international business are a major concern for international companies. The economic costs of terrorism include:

• A) increased cost of insurance.
• B) affecting developing countries hardest.
• C) creating uncertainty.
• D) threats for regional economic prospects.
• E) all of the above.

---

Definitions:

General Items

Products or commodities that are basic and nondescript, typically stocked regularly.

Critical Items

Items that are essential for the production process or meet customer demands, where their absence can significantly impact operations.

Quantity Flexibility Contract

An agreement between a supplier and a customer that allows for adjustments in the purchase order quantity within certain predefined limits.

Demand Visibility

The ability of a company to forecast and respond to customer demand in a timely and accurate manner.