11-03-2011, 02:17 PM
Presented by:
Vaibhav s. Shah
[attachment=9989]
SEMINAR ON CONTEMPORARY ISSUES IN MANAGEMENT
MODULE-3
CHEMICAL TERRORISM AND ITS IMPACT ON BUSINESS
MEANING
Terrorism using chemical agents. These chemical agents are poisonous gases, liquids or solids that have toxic effects on people, animals or plants. Most chemical agents are capable of causing serious injuries or death. The severity of injuries depends on the type and amount of the chemical agent used, and the duration of exposure.
Chemical warfare or chemical terrorism involves the use of synthetically produced chemical compounds to kill or injure humans, animals, and plants
CHEMICAL TERRORISM CHARACTERISTICS
Possible warning of attack
Immediate or delayed effects
High casualty rate
Incapacitating or lethal
Spread of contamination
Immediate impact on response agencies
CHEMICAL AGENTS
The military defines five types of agents
Nerve Agents
Sarin, Soman, Tabun and VX (organophosphates)
Blister Agents
Mustard, Lewisite
“Blood” (Cyanide) Agents
“Choking” Agents
Chloride, Phosgene
Incapacitating Agents
Tear Gas, Pepper Spray,
Commercial Chemicals can also be used as weapons
The FBI has a list of industrial chemicals that terrorists might use called the “Critical Agent List”
Ammonia
Arsine
Chlorine
Cyanides
Hydrogen Sulfide
Methyl Isocyanate
Phosgene
Phosphine
Sulfur Dioxide
Fluorine
Chemical Weapons on the Battlefield
World War I use
Chlorine and mustard agent
World War II developments:
Tabun, Sarin, and Soman by Germany
VX by Great Britain
Rocket delivery
Worldwide outcry for chemical weapon treaties
IMPACT ON BUSINESS
Crash in stock market: Tremendous fall in the stock market has been observed after every terrorist attack. Indian stock market is closely related to the emotions of investors. People start loosing their confidence from the stock market after any terrorist attack.
Indian investors move for foreign investments: The terrorist attack creates instability in the countries environment. Due to these our own big investors move towards other foreign countries for their investment, where they can get surety for their money. This will results in downward of investments.
Concentration of fund in security sector: Increase frequency of terrorist attack requires government to invest more money in security and defense sector than in other sectors. This may result in less fund allocation to infrastructure and agriculture sectors. So, by this the infrastructure and agricultural sectors suffer.
Foreign institutional investors: Due to environmental and political instability foreign investors could move their investment areas. As the recent terrorist targets hotels and tourists which results in decrease in investments towards hotel and tourism industry.
No new project: India’s IT software sector more depends on foreign projects, but due to terrorist attack they might stop giving their projects to our country. No new technologies come up for implementation. We can not hire foreign skill people, due fear in their mind about our countries political and social environment.
Impact on export-import: this continuous instability also harms countries import-export. While exporting our goods to foreign countries they demand for more checking and security due to terrorist attack on our country. Same case for importing goods from other country.
Mirror image of economy: stock market is consider as mirror face of Indian economy. Terror attack impacts negatively on stock market. This result in slow economic growth and development.
Impact on insurance sector: Insurance sector has to bare losses for those insured people who suffered due to terrorist attack. Size of such a loss is not predictable by any insurance company. Many insurance companies got bankrupted after 9/11 terrorist attacks on united state.
There is also the potential impact of psychological fear of terrorism on economic behavior. For investors, corporations and government policymakers, it is critical to understand the magnitude of the effects of terrorist acts.