Life is full of risks, and everyone takes them. Among other things one's personal tolerance for risk largely determines the level of his or her success. The greatest fortunes in history all started with a risk, and most of them with an enormous risk. We can mitigate risk by diversification, both in our investment portfolios and in our national and international economies.
Write a paper about how diversification works within a national economy, and illustrate the risks nations or specific regions within nations have when there is minimal diversification.
To achieve maximum points for content and analysis, the following elements need thoroughly addressed:
Define what diversification means in a national economy.
Give at least one example of what a well-diversified country might look like.
Give at least one example of what a poorly diversified country might look like.