Let us first address what a country's economy depends on:
• Workforce
• Availability of Natural resources
• Skill
• Education
• Management
• Government Relationships
Etc.
Diversification is essential ofcourse but at the same time if one sector falls down and other sector picks up , one needs to handle people and resources involved in the failed sector too .
It's all about Sustainability. How well you can manage and make it competitive. The market is no doubt cruel , but at the same time one needs the knowledge of their own country's location and natural resources too .
If the country is in a Tropical section then they can for sure try and invest in farming , horticulture etc... But most of the times it is not the choice if the government but people themselves.
It does depend on the interest of people , what they want to do and what they don't . Government owned business are not the only thing generating revenue for the economy.
Topic: What brings economy of a country down. - page 8. (Read 1635 times)
Diversification only applied for manage the country's reserve, as for the economy itself, to determine what to produce, it's better to let the market decide (free-market system) since the government cannot predict the future, what people need and want.
What you describe on the OP is precisely why the command economy failed.
What you describe on the OP is precisely why the command economy failed.
Economy of some country has fall due to they channel their economy one side,what brings economy down is base on focusing on one particular thing not be diversified in different sectors, so when that particular product fails to trend in market the way it's before such country will be shortage of economy and the life of the people will be in danger base on things is moving wrongly to the country.
And the way a country can be free from falling of economy is to spread their economy or diversified economy so that when one of sector shutdown another will pick up.
And the way a country can be free from falling of economy is to spread their economy or diversified economy so that when one of sector shutdown another will pick up.
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