Option 1 -> Political instability causes disequilibrium by affecting foreign investment and trade flows.
Option 2 -> Large imports lead to increased foreign exchange outflow, creating current account deficit.
Option 3 -> Low domestic prices make exports more competitive, actually helping to improve BOP rather than causing disequilibrium.
Option 4 -> Changes in taste and fashion affect import-export patterns, causing BOP imbalances.
Hence, Option 3: Low Domestic price -> Low domestic prices make a country's goods more attractive in international markets, boosting exports and reducing imports (as domestic goods become relatively cheaper). This favorable competitive position helps improve the Balance of Payment rather than causing disequilibrium. Disequilibrium occurs when there are adverse factors, but low domestic prices create a competitive advantage that typically leads to BOP surplus, not deficit. -> correct