Nations with recent changes in government that drastically alter the political system are vulnerable to terrorism, as are countries with a weak democratic infrastructure that cannot resolve issues among groups. An infrastructure that defuses situations before frustration becomes radicalized can limit opportunities for terrorism in the United States and other democratic industrialized countries. After a terrorist group is formed, its operations tend to escalate until its members are considered criminals and face the decision whether to embark on indiscriminate violence. Historical analysis shows that once terrorism reaches the indiscriminate stage of violence, the government's ability to combat it is inversely related to the strength of democratic norms and values. Moreover, international terrorists are more likely to be successful when the group can sustain itself over several years. Economics are also important to terrorists as a basis for their goals and to provide financial support. Based on these principles, the author outlines a typology to assist overseas business executives in assessing the dangers confronting their organizations. Graphs and footnotes are included.