What effect does war have on international business? Explain your answer in a short essay and provide an example for illustration

What will be an ideal response?

War, insurrection, and revolution pose big problems for business operations. While such events usually do not affect companies directly, their indirect effects can be disastrous. For example, violent conflict among drug cartels and security services along the U.S.-Mexico border has led some firms and financiers to withdraw their investments from Mexico because of perceived heightened risks and political instability. In order to minimize losses from violent acts, firms can purchase risk insurance.