Economist claim that terrorist attacks can be viewed as another type of trade barrier.

Economist claim that terrorist attacks can be viewed as another type of trade barrier.  Do you agree?  Why?After reading The African Business Journal  article about Boko Haram in, ”Boko Haram and its impact on Nigerian Economy” Do you think this terrorist organization and it’s action in Nigeria is having an impact on Nigeria’s import/export industry (trade)?If so, what type of affect do you think the terror group has on Nigeria’s import/export business? this first one of my classmate:Yes, I do believe terrorist attacks can be viewed as another type of a trade barrier. Instilling fear in the area affected as well in foreign investors tend to create a panic that tells people to evacuate. Once panic sets in, it is very difficult to remove.  In the large scheme of things, Boko Haram has slightly impacted Nigeria’s overall trade. This is because Boko Haram is localized in northern Nigeria not south Nigeria where the resources are rich such as oil. The economic impact that was noticed was in the form of foreign direct investments (FDI). FDI quickly dropped when Boko Haram came to form and the government having little power over them. Outside investors or countries looking to trade would take note on the volital environment that parts of Nigeria are in and shy away. No one wants to invest in an area that may be dangerous in more ways than one. New business will not form in northern Nigeria due to this very reason. Its very own people are fleeing to other parts of the country, however, the article notes that in the areas of destruction are the areas of opportunity. I also believe that Jonothan’s government must act swiftly and demolish Boko Haram in order to save the country from further destruction. They cannot ignore what is going on in order to send all resources to the south. Unfortunately, this is more common than not, however, if it continues to be ignored, the destruction will soon spread to all parts of Nigeria including the resource rich south.

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