Diversification helps to manage volatility and provide a more stable path for equitable growth and development . Successful diversification is all the more important now in the wake of slowing global growth and the imperative in many developing countries to increase the number and quality of jobs.
Is economic diversity important?
Economic diversity is essential for sustainable development and it opens doors for specialization and skill improvement.
What is an example of diversified economy?
Chile is an example of a diversified economy, exporting more than 2,800 distinct products to more than 120 different countries. Zambia, a country similarly endowed with copper resources, exports just over 700 products — one-fourth of Chile’s export basket — and these go to just 80 countries.
How does diversity impact the economy?
In addition, global linkages increase as culturally diverse staff , particularly migrant workers, may have international connections aiding the flow of labour, goods and services. Lastly, the hospitality and food industry also benefit as cultural diversity leads to increased cuisines and dining options.
What is a highly diversified economy?
Economic diversity or economic diversification refers to variations in the economic status or the use of a broad range of economic activities in a region or country. ... Research shows that more diversified economies are associated with higher levels of gross domestic product .
What are the benefits of diversity in society?
- it promotes tolerance and understanding between different cultures;
- it enriches our community through shared experiences with different people;
- it attracts more money to our economy through the growth of different businesses;
- Understanding the Benefits of Diversity for the Healthcare Workforce and for Patients. ...
- Higher Employee Morale. ...
- Better Care for Diverse Populations. ...
- Higher Employee Retention. ...
- Better Recruitment. ...
- Stronger Individual Motivation. ...
- Better Problem Solving. ...
- Better Results.
What makes a diversified economy?
Economic diversification. Economic diversification is the process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets . Traditionally, it has been applied as a strategy to encourage positive economic growth and development.
What is diversification with example?
Concentric diversification refers to the development of new products and services that are similar to the ones you already sell. For example, an orange juice brand releases a new “smooth” orange juice drink alongside it’s hero product, the orange juice “with bits”.
What are the two types of diversification strategies?
- Concentric diversification. Concentric diversification involves adding similar products or services to the existing business. ...
- Horizontal diversification. Horizontal diversification involves providing new and unrelated products or services to existing consumers. ...
- Conglomerate diversification.
Diversity builds productivity, creativity and solutions
Broader perspectives and deeper ideas mean better solutions and different skillsets. A flow-on benefit is adaptability in services or product offerings. Diverse perspectives can also help you develop better products to meet your customers’ needs.
What are the impacts of diversity?
Diversity, including diversity of gender, religion, and ethnicity, has been shown to improve retention and reduce the costs associated with employee turnover . In a diverse workplace, employees are more likely remain loyal when they feel respected and valued for their unique contribution.
What are the negative impacts of diversity?
Diversity can have a negative effect on a company. Diversity and differences within a team can lead to poor communication and reduced teamwork, conflict, exclusion and people leaving the organization .
How can you promote diversification?
The strategies of diversification can include internal development of new products or markets , acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm.
What does Diverify mean?
transitive verb. 1 : to make diverse or composed of unlike elements : give variety to diversify a course of study. 2 : to balance (an investment portfolio) defensively by dividing funds among securities (see security sense 3) of different industries or of different classes diversify your investments.
What are advantages of economic system?
People can spend money on what they want and can own resources privately. Advantages of a market economy include a high degree of individual freedom and customer satisfaction , a variety of goods and services, the incentive to take care of private property, and decentralized decision making.
