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Since September 2002 a lot of things have changed in the world of business and politics: Using examples from both fields discuss the changes that have occurred and what they might have in the next year?

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Introduction

Since September 2002 a lot of things have changed in the world of business and politics: Using examples from both fields discuss the changes that have occurred and what they might have in the next year? The September 11th attacks on the world trade organisation left the world in shock, changing the lives many individuals, organisations, countries and economies. It has affected the world of business and politics in many ways and these effects are still continuing to occur. Following the attack, it was difficult for New York to derive the specific economic costs, hence making it harder for the American government to introduce plans aiming to resolve the situation. However after examining and quantifying the impact of the attack a leading team of New York economists and consultants have detailed the effects. The economic impact is likely to total to $83 billion in damage to New York's economy, even after the payment of insurance claims, cleanup operations and repair costs of infrastructure the total damage to the economy is expected to be at least $16 billion. The net loss of jobs lost due to the attack will be approximately 60,000 at the end of 2003; this is not considering those jobs that will return. ...read more.

Middle

Therefore it can be said that the economic consequences of the events in New York weren't as severe as many feared they would be or were at the time. Before that day the economy began to perform poorly over a period of time and this fact cannot be hidden behind any happening. Immediate effects were predominantly felt in the airline industry (described above) and financial markets, which were closed for a week. When the stock market reopened the next week, the Dow Jones Average index of leading stocks fell by 15%. The central banks tried to rescue the situation in the short term through continuously dropping interest rates, which economist's claim was successful as national income increased by the end of the annual period. However a worrying issue is still the falling stock markets, which were worsened by some discoveries about misleading accounts of companies such as Enron and WorldCom. It has led to further uncertainty amongst shareholders who may now doubt every source of information and data presented to them. The above has looked at the economic consequences the events caused; this essay will also take a look at the how the world of politics changed. When the disastrous events occurred many politicians were very quick to emphasise how the world had changed. The U.S. ...read more.

Conclusion

Terrorism hence attacks like those discussed in this essay will not stop until the root cause of these groups anger is uncovered such as poverty and oppression. Although in theory this would be the most sensible approach to solving such a problem, in reality such changes to society will take decades. Overall it can be said that the events on 11 September had considerable short-term effects in the fields of business, the economy and politics. The airline, insurance, tourism industries suffered immediately with record losses being recorded although the defence industry gained through large massive rise in the U.S military budget. A huge blow was delivered to consumer spending and business investment levels, as confidence fell dramatically due to an uncertain outlook. However it must be emphasised that the world economy was already slowing down in terms of growth before September 11th, so these events cannot be solely blamed for this downturn in the economy. Share prices have also dropped considerably. Politicians were very quick to claim the world had changed and would never be the same after the attacks which is true to some extent however some countries tried to hide their major problems (middle eastern countries in particular) behind those of America's which took centre stage in the world. ...read more.

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