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Terrorism refers to a strategy of using threats and violence against civilians for political or ideological purposes. In an extended use, assassination of politicians and military personnel is also called "terrorism." Examples: Russian terrorists assassinated the Tsar and various government officials, Israeli terrorists targeted the British military. These are better described as forms of warfare by partisans, freedom-fighters, or insurgents.

State terrorism occurs when a state used threats, embargoes, and violence against civilians -- be the civilians nationals or foreigners.

http://en.wikipedia.org/wiki/Terrorism