Scared enough? How terrorism threats affect US-Canadian business ties

Abstract

Purpose – The purpose of this paper is to examine how security-related issues affect business in an integrated economic space. North America is an interesting case, as Canada and the USA have historically been highly integrated economies. Design/methodology/approach – Research that focuses on the relationship between security and business is reviewed. First, the perception of security issues by business leaders is examined. Second, the North American case is discussed. Findings – In the decade following 9-11, not all industries felt the aftermath in the same way, and business leaders from Canada and the USA did not necessarily focus on the same priorities. A thickening border is increasingly challenging for firms even though they have historically coped somewhat efficiently. Research limitations/implications – This paper has implications for integrated economies. Policymakers need to frame their response to security issues in a way that takes into account their effect on trade and firms. Practical implications – Given terrorism’s impact on industries, the differences in priority ascribed to the issue by executives and the varying responses to address the problem, ensuring the ongoing gains from transborder business activity, requires creative solutions. Originality/value – The effect of security on business is seldom studied. This paper provides a vivid example of the interplay between these two critical elements. This renewed understanding allows policymakers and business executives to find a common ground so that security issues are not dealt with at the expense of firms and cross-border trade.