Consequences for companies

Date: 2015-10-07; view: 430.

ECONOMIC CONSEQUENCES

TEXT B

The attacks on the World Trade Center, heart of world capitalism, and the Pentagon, symbol of the U.S. military, hit the economy all around the globe. Tourism, leisure and insurance industries suffered most. The insurance industry paid out record claims resulting from the terrorist attacks and the fear of flying as well as an expanding recession caused many consumers to cancel their vacations.

Although most branches of the industry faced long-term and large financial losses following the events of 9/11, in some industries, especially security and law enforcement the terrorist attacks created jobs and brought in more earnings. Companies producing security computer software or security systems like surveillance equipment, fingerprint recognition devices and bomb detection machinery were inundated with orders. Also, pharmaceutical companies like Bayer, which produce vaccines and antibiotics that guard against potential bio terrorism threats like anthrax and smallpox could profit.

Furthermore banks have been greatly affected. As a reaction to the September 11 attacks Germany's largest credit institution "Deutsche Bank" has decided to cut its workplaces from 94,800 to 80,300 worldwide by the end of 2003, the German "Commerzbank" dismissed 4,300 of its 38,000 employees. Other industries like entertainment or tourism suffered heavily from the impact as well.