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."
Foreign internal defense
Insurgency matters today because it is linked to the phenomenon of transnational terrorism. Insurgents have long used terrorism in the operational sense, deterring those who supported the government and creating an environment of violence and insecurity to erode public trust in the regime. But now terrorism plays a strategic role as well. Insurgents can use terrorism as a form of long-range power projection against outsiders who support the government they are fighting. This could deter or even end outside assistance. It is easy to imagine, for instance, that the already fragile backing for American involvement in Iraq would erode even further if the Iraqi insurgents launched attacks in the United States. Even more important, an insurgent movement able to seize control of a state could support transnational terrorists. The idea is that insurgents have demonstrated an affinity for violence and extremism which would flavor their policies if they came to power.