reframe this sentence Take terrorist attack as an example terrorism has a profound effect on a country’s security and economic progress Dai et al 2020 which strongly affect firms First terrorist attac

By using terrorist attacks as an example, it is evident that they have a significant impact on a country's security and economic progress (Dai et al., 2020), which in turn affects firms in various ways. Firstly, such attacks can disrupt firms' supply chains, leading to financial losses and challenges in making strategic decisions (Dai et al., 2020). Secondly, they can result in increased government regulations, security measures, and insurance costs, thus limiting firms' operational flexibility. Thirdly, terrorism can create fear and anxiety amongst employees, and disrupt social and economic activities. Lastly, it can adversely affect R&D activities, with firms decreasing R&D investment in the post-attack period due to heightened uncertainty (Li et al., 2022). Firms located near terrorist attacks may also produce fewer and less impactful inventions (Fich et al., 2023)