Every country has its own special blend of natural resources that are indigenous to its particular region of the globe. These resources help to drive a country’s economy and fuel the markets around the world. However, very few countries can be entirely self-sufficient in every aspect of the marketplace. Even if a country does have the resources to produce all its basic products domestically, there is always a market for imported luxury items. The following highlights some of the ways in which terrorism impacts how importing and exporting is done throughout the world.

Disease

The threat of biological terrorism raises fears in regards to the importing and exporting of products from one country to another. Terrorists could possibly contaminate a shipment with a biological weapon, such as anthrax, in order to infect those that will receive the contaminated shipment. This has led to many countries making stronger regulations and taking security precautions to help deter the threat of biological contamination.

FDA

The United States has responded to such threats by passing the Bio-Terrorism Act in 2002 which mandates that manufacturers of products that are considered food or beverage be registered with the Food and Drug Administration (FDA) before any shipments will be allowed to enter the United States. Along with the manufacturers being required to have registered with the FDA, notice of the actual shipment must be given to proper authorities before any foreign import will be allowed across the borders of the United States.

Market Effects

The effects of heightened security surrounding the importing and exporting of goods result in higher costs passed onto the consumer. Such price increases serve to shape the financial world of importing and exporting. Due to higher costs, companies may decide that importing or exporting a particular product is no longer cost effective. If importing and exporting continues to occur, profit margins may be effected which will in turn hurt the overall performance of the company and its value on the market. This is how terrorism serves to shape the world economy by affecting the importing and exporting habits of virtually every nation around the globe.