The 9/11 terrorist attacks had major impacts on international relations and the global economy. The US used the international consensus against terrorism to justify military action in Afghanistan and Iraq. However, the Iraq invasion damaged the US image and failed to counterbalance US power as other nations had hoped. Economically, 9/11 slowed US productivity growth as more resources went to security. Industries like airlines and insurance were severely affected. Global trade and financial flows declined in the short term due to uncertainty. Countries increased defense spending while social views toward Muslims became more negative. Overall, 9/11 changed geopolitics and international economic relationships while strengthening nationalist sentiments.