Politics. Managers must evaluate the political stability of potentially attractive markets. Instability can lead to a variety of problems from stagnant economic growth to violent civil disobedience....

Politics. Managers must evaluate the political stability of potentially attractive markets. Instability can lead to a variety of problems from stagnant economic growth to violent civil disobedience. The riots in Argentina that erupted following the 2001 currency devaluation were indicative of popular frustration with a corrupt government. Similarly, the surprise victory in 2004 of India’s Congress party in parliamentary elections led to a dramatic stock market decline as investors feared the newly elected government would reverse economic reforms that had helped create thousands of high-paying service jobs. Managers need to assess political undercurrents that might jeopardize a global business strategy.