export diversification

Syllable breakdown

Dictionary meaning

an economic strategy aimed at broadening the range of goods and services a country sells in international markets, reducing dependence on a narrow range of commodity exports and building a more resilient, higher-value trade portfolio; many developing countries — particularly in sub-Saharan Africa and the Caribbean — remain heavily dependent on one or two primary commodities whose prices are volatile on world markets, making government revenues and foreign exchange earnings highly vulnerable to external price shocks; export diversification involves moving up global value chains from raw commodity export to processed goods and manufactures, developing service exports including tourism and business process outsourcing, and building the productive capacities — in education, infrastructure, and institutions — that enable new sectors to emerge and become competitive; successful diversification is associated with sustained economic growth, greater employment generation, and reduced vulnerability to the boom-and-bust cycles that characterise commodity-dependent economies