When targeting a foreign market, an export firm needs to be aware of those factors that indicate the level of political stability in that market. These factors include:

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The degree of social unrest reflects the potential for political instability, as does the frequency of change in government. The extent of cultural or ethnic division can also be a factor, as these divisions can lead to political tensions. Language diversity can make it more difficult for the export firm to communicate with potential customers or partners. Finally, export performance is a reflection of the strength of the foreign market's economy, which can be impacted by political instability. Income distribution and religious diversity may also be indicators of political stability, but they are less directly related than the factors included in option C.

When Targeting a Foreign Market, an Export Firm Needs to Be