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Describe one consequence of dependence on prima... - SS3 Economics Characteristics of A Developing/Underdeveloped Economy Question

Describe one consequence of dependence on primary industries in a developing economy.

Dependence on primary industries in a developing economy can lead to vulnerability to fluctuations in commodity prices. This can limit economic diversification and create a reliance on a small number of industries, which can be a risk to long-term economic stability.

 

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