to 400 citizens, thousands injured, and millions in distressed…the atmosphere in Israel(is) a mix of defiance and despair” (The Economist, 2002). The September 11, 2001, attack on the twin towers was an absolute shock to the US economy, the impact of this event has yet to be fully measured. The act of terrorism could influence significant changes in the consumption and production pattern. For example, the attack on Israel Israelis now prefer malls instead of markets and walk in the streets instead of taking buses. This has a profound effect on the pattern of international trade. However, terrorist induced uncertainty may have a negative effect on trade. The means of terrorist such as bombing and shooting are unpredictable, businesses how
