Question
State the economic effects of terrorism.

Answer

The activity of spreading terror, fear, violence based on any political, religious or any other specific ideology is called ‘Terrorist Activity’.
  • It’s economic impact on the nation are:
  • The regional economy of a country is affected, business comes to a standstill and progress is hampered.
  • Evil practices like drug trafficking, money laundering, robbery, drug addiction increase.
  • Terrorist organisations extort money from businessmen and they are not ready to start or continue business in terrorist prone areas.
  • The government has to spend crores of rupees for security and defence, so projects of public utility are stalled.
  • Bombing destroys public property and lots of money goes in for repairs.
  • Essential commodities become expensive and people have to suffer due to price rise and' depression in the economy.

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