Question

are there any advantages for host countries and businesses that experience terrorist incidents if the economic cost is more than the associated risk?

Answer 1

Yes the countries and businesses who experience terrorist incidents often get advantages in terms of FDI inflows and investment in their countries when economic cost is higher than other associated risk, it is because companies/investors invest in any company out of motive of profit and economic opportunities which they see by investing, i.e. like in middle east and west asian countries where there are lots of disturbances and ethnic clashes and terrorist activities happens but inspite of that due to economic opportunity available there in terms of natural resources, i.e. oil, gas, demand for defence products and demand for goods and services which are often the daily use items since the companies and investors which sees the economic opportunities out of the risk to their business will prefer to invest to make profit out of that investment and expansion of their business there and this surpasses all the risk of economic cost associated with the terrorism.