<b>How does Terrorism Effect on Business and Relation Between Countries</b> The international business or IB is threatened by the indirect and direct effects of terrorism. Since the moment governments have tightened the safety of public sites, the various businesses have turned into exponential attractive targets for terrorist attacks, with vital implications for the performance and operations of the companies that are multinational in nature. Though, substantial studies have been done in different fields about terrorism, less scholarly research has been done on the various challenges which it inflicts upon international business as well as how to address terrorism as a problem. Through this particular article we would conceptualize the terrorism concerned with international business. The background on effects and dimensions of terrorism as well as developing theoretical grounding for researching terrorism by sketching on literature provided by international business, political science, economics and different sectors shall be provided by us. Once discussion on findings from review of the literature is done, a comprehensive program for subsequent research concerning the connection between international business and terrorism is offered by us. The program that we offer emphasizes on the effects of organizational preparedness, terrorism, company performance and its strategy, global distribution and global supply channels, as well as the issues pertaining human resource. The review that we render, aid in establishing a baseline that further assists in empirical research in the future. This consistent with research in an early stage, international business scholars get encouragement to offer perspectives as well as effective solution that are useful and throw required light on the various aspects of terrorism and also aid in reducing its devastating effects for multinational firms and international business.. Terrorism, International Business IB 660-668 Issue-6 Volume-1 Prof. Sidharth S. Raju | Pooja