The Hidden Cost of Ubiquity: Globalisation and Terrorism

34 Pages Posted: 6 Nov 2003

See all articles by Barbara Krug

Barbara Krug

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Patrick Reinmoeller

Cranfield School of Management, Cranfield University; Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship

Date Written: 28 2003, 10

Abstract

Terrorism is not a natural hazard outside the range of corporate decision-making. Simple micro-economic analysis shows how globalisation changed the supply of terrorist attacks and the costs for tolerating terrorist hazard. Approaches developed in organizational strategy help to single out three strategic decisions directly affecting the vulnerability of firms in a globalised world: exposure, geographical spread, and organisational form. The analysis suggests that the gains from ubiquity, leanness in production, and long-term commitment need to be adjusted for the terrorist hazard involved.

Keywords: terrorism, internationalisation, multinationals, deterrence, organizational strategy

JEL Classification: M, M10, L2, F23

Suggested Citation

Krug, Barbara and Reinmoeller, Patrick, The Hidden Cost of Ubiquity: Globalisation and Terrorism (28 2003, 10). ERIM Report Series Reference No. ERS-2003-062-ORG. Available at SSRN: https://ssrn.com/abstract=463810

Barbara Krug

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Patrick Reinmoeller (Contact Author)

Cranfield School of Management, Cranfield University ( email )

United Kingdom

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship

RSM Erasmus University
Netherlands

Register to save articles to
your library

Register

Paper statistics

Downloads
560
Abstract Views
3,638
rank
48,876
PlumX Metrics