When is it appropriate to use foreign R&D

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a. How did the events of 9/11/2001 change the global landscape for business?

Terrorist events, such as those of 9/11, significantly raise the risks and costs of doing business globally. Due to such events, global companies become much more concerned about the safety of their employees and sustainability of their operations in such terror struck nations. Companies and government start spending more on security measures.

The indirect costs of terrorism can be significant and have the potential to affect the economy in the medium term by undermining consumer and investor confidence. A deterioration of confidence associated with an attack can reduce the incentive to spend as opposed to save, a process that can spread through the economy and the rest of the world through normal business cycle and ...