Q: The destruction of the twin towers of the World Trade Centre in New York, and the attack on the Pentagon had a serious impact on the global business and trading environment. Write an essay on this topic, focussing on a detailed discussion of what the effects were and the reasons why these terrorist acts have had the impact they have.
America suffered the worst terrorist attack ever. Suicide hijackers crashed two fuel-laden passenger jets into the towers of the World Trade Centre in New York, both of which caught fire and collapsed, killing office workers and rescue workers alike. The entire southern end of Manhattan was evacuated.
Another hijacked plane was flown into the Pentagon in Washington, DC, and a fourth plane crashed near Pittsburgh. The total death toll was estimated to run into thousands. Airports, borders and stock markets in America were closed, and flights to, from and within America were grounded.
Politicians around the world condemned the attacks and promised help in finding the terrorists. President George Bush promised to hunt down the perpetrators of what he called "an act of war" and put America's armed forces on high alert.
The terrorist attack on America sent shivers through global financial markets. The dollar plunged by 3% against the euro and the yen immediately after the attack. It later regained some of its losses. Trading was suspended on Wall Street, leaving stock markets around the world in a state of nervousness.
After the shock of the September 11th attacks, American insurance bosses said that if they were to renew cover for terrorist risk, either they would have to charge exorbitant rates or they would need government support. However to date the House of Representatives and the Senate have yet to comprise an agreement.