State terrorism
While the most common modern usage of the word terrorism refers to civilian-victimising political violence by insurgents or conspirators, several scholars make a broader interpretation of the nature of terrorism that encompasses the concepts of state terrorism and state-sponsored terrorism. Michael Stohl argues, "The use of terror tactics is common in international relations and the state has been and remains a more likely employer of terrorism within the international system than insurgents. Stohl clarifies, however, that "[n]ot all acts of state violence are terrorism. It is important to understand that in terrorism the violence threatened or perpetrated, has purposes broader than simple physical harm to a victim. The audience of the act or threat of violence is more important than the immediate victim."
International business
Terrorism is a voluntary act of violence towards a group(s) of people. In most cases, acts of terrorism is derived from hatred of religious, political and cultural beliefs. An example was the infamous 9/11 attacks, labeled as terrorism due to the massive damages inflicted on American society and the global economy stemming from the animosity towards Western culture by some radical Islamic groups. Terrorism not only affects civilians, but it also damages corporations and other businesses. These effects may include: physical vandalism or destruction of property, sales declining due to frightened consumers and governments issuing public safety restrictions. Firms engaging in international business will find it difficult to operate in a country that has an uncertain assurance of safety from these attacks.