Impact of International Terrorism on Commodity Markets

Terrorism is now a fact of life that has brought considerable uncertainty to the global economy. The financial impact of terrorism takes the form of risk premium for businesses, loss of business activity due to heightened security risks, change in consumption and production patterns, and shifts of resources towards combating terrorism. Understanding the losses incurred due to a terrorist attack is rapidly becoming an important area of risk analysis. This book is a start-to-finish guide to investigating the impact of international terrorism on commodity markets and if a diversified commodity portfolio provides investors with diversification benefits in such extreme politically uncertain environment.