Terrorism, as the name implies, is the act of trying to inflict terror on the opposition, usually for change. It relies on striking fear into the enemy. Traditional warfare does not rely on fear and it's goals are to destroy military targets and other things that are useful o the enemy (in total war).
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It led to the start of world war 1. Archduke Ferdinand was from the Balkans which was known as the "powder keg" of Europe during this time period.