Terrorist Attacks May Drive Businesses to Countryside

Release Date: September 13, 2001 This content is archived.


BUFFALO, N.Y. -- Businesses that in recent years flocked to upscale addresses in high-rise buildings in large cities now may be looking for a place in the country following this week's terrorist attack that destroyed the World Trade Center, according to an associate professor of finance and managerial economics at the University at Buffalo.

Lawrence Southwick Jr. notes, "In the longer term, I think we'll see some companies decide to locate their operations away from large cities that could be targets for future acts of terrorism. Information technology now makes it convenient for companies to be located anywhere and still stay connected with their industry and service their clientele."

Southwick believes that the terrorist attack will have only marginal effects on consumer confidence and the stock market. "The bigger threat to the health of the economy is the ripple effect the will result from the attack's impact on the airline and insurance industries," he says.

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