Abstract
In this paper, we have explored the impact of terrorism on the international business in Pakistan. For this purpose we have taken the data from 1998 to 2008 and applied the random sampling method and Pearsons product moment. Our results are showing that there is association between terrorism and international business in Pakistan. Terrorism has impact not only stock exchange of Pakistan while, it has impact on the other sectors like education, banking sector, finance sectors, foreign direct investment sectors also. Therefore Government of Pakistan should have taken notice such types of terrorism activities. These terrorism activities have impact on the economy of country; due to this reason the economy of Pakistan is going to decline position.
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