Economic Impact Created by Terrorist Attack in France

On 13th November, Paris was reported to be attacked by terrorists, resulting in a death toll at 128 and numerous of casualties by now. Thousands of police and soldiers were drafted in to secure the city. Both Paris and the world citizens are horrified by the attack.

In 2014, France ranked the third in terms of total tourism revenue in the world. Tourism is an enormous part of revenue for France. However, the attack has made tourists shaken and horrified. In short run, tourists are expected not to travel France due to the potential threats from terrorists and sorrowful atmosphere. Gain from tourism activities such as shopping, which Paris is well known for, will reduce. Exports and imports will meanwhile be affected because TNCs may lose their confident towards local market due to the continuous political and social unrest in France.

Apart from external impacts, internal ones are expected to appear. For instance, French’s working incentive will decrease due to uneasy atmosphere in society and political unrest. Both the physical and mental state of the country will decline after the incident, and will not be able to fully recover in short term. The casualties of Paris attack are pathetic and innocent. It is hoped that they can get recovered physically and mentally to make a concerted effort to rebuild the stunning city.

Reference: http://www.economist.com/news/europe/21678508-least-forty-are-dead-others-are-held-hostage-french-security-services-had-warned-attack-might-be?spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709

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