diversification definition economics

Definition: Diversification refers to the expansion of an existing firm into another product line or market. Examples include sociology, political science, psychology, anthropology, history, and (of course) economics. Economic diversification is vital to countries’ long-term economic growth, but many resource-rich countries remain heavily reliant on revenues generated by mining or oil production. Diversification is primarily used to eliminate or smooth unsystematic risk. Diversification is used as a strategy to encourage positive economic growth and development. In vertical diversification, the farm manager handles raw products after harvest by processing, packaging, transporting, or even… Some business leaders believe that capital should be allocated in a way that reduces exposure to any one particular asset or risk. It is the stage where traditional agriculture is transformed into a dynamic and commercial sector by shifting the traditional agricultural product mix to high standard products, that has a … PLAY. These will shape diversification priorities and policies. Economics Diversification. Ryanair Meets Ansoff with Corporate Jet Service. C’est particulièrement le cas pour les PME. We use cookies to distinguish you from other users and to provide you with a better experience on our websites. STUDY. Productive employment is a major goal, for example, in many exporters, including in the Middle East, but there is a striking difference between the oil rich, labor importing, countries of the GCC and the other, oil rich but labor abundant, countries. What is diversification? Corporate Change at Google – as … Diversification—the spreading of one’s talents over more than one farming enterprise—may be accomplished horizontally or vertically. Diversification vs. specialization as alternative strategies for economic development: Can we settle a debate by looking at the empirical evidence? Définition et mesure de la diversification. On the other hand, the sectoral-specialization mechanism increased volatility in only just above one-half of the countries in the sample. How to use diversify in a sentence. Diversification is a business strategy in which a company enters a field or market different from its core activity – it spreads out rather than specialize. diversification strategies of firms is an issue largely overlooked in both the strategic management and international business literatures [20]. Diversification can be generally be definite as "production of goods or services belonging to a different sectors or segments, that is…. Group(s):Key terms and concepts; Print page. Basic Definitions . Horizontal diversification means the production of more than one item for sale. This allows the diversified firm to practise predatory pricing in the market to drive out competitors or discipline them, so raising prices to monopoly levels in the long run. Diversification may be related or unrelated. En effet, le processus d’innovation est coûteux et aléatoire quant à ses résultats. Something we MUST have in order to survive (e.g. water, food, housing) Wants. Takeover Strategy: Sainsbury's and Argos . En microéconomie, la stratégie de spécialisation consiste pour une entreprise à se concentrer sur un seul domaine d'activité afin d'en avoir la maîtrise, de profiter de l'effet d'expérience et de compétences spécifiques et complémentaires.. Définition macroéconomique. Diversifications producing more than one product (across products) or running more than one business (across businesses) ex) across the products: different products or similar (related) products Firm Firm Degree of diversification Definition LESE204. Diversification Definition. The past two decade has especially seen extensive research on diversification strategy. Agricultural diversification is one of the essential components of economic growth. Alphabet Ditches a (Robot) Dog from its Business Portfolio. The study of society and the way individuals interact within it. Share: Share on Facebook Share on Twitter Share on Linkedin Share on Google Share by email. Diversification As Risk Strategy Economics Essay. dispersal of production operations of firms in different business. Florian Kaulich Department of Economics Vienna University of Economics and Business (WU Wien) UNIDO Consultant Growth Stocks. Diversification occurs when a business develops a new product or expands into a new market. These are stocks of corporations with great potentials for growth. To extend into disparate fields. b. Research shows that more diversified economies are associated with higher levels of gross domestic product. Definition and meaning. 25Une économie est dite diversifiée si sa structure productive est dispersée en un grand nombre d’activités différentes les unes des autres par la nature des biens et services produits. Définition microéconomique. What is Diversification? the means and mode of exchange, distribution and production. 21st March 2016 . 1. a. The objective of this technical paper is to start addressing one of the mandates referred to in paragraph 1 above: preparing technical materials to assist developing country Parties in their economic diversification initiatives. The strategy in which an organization plans as to how to enter into a new market which the organization is not in, while at the same time creating a new product for the new market. The international diversification puzzle is the fact that country portfolios are on average biased toward domestic assets, while one-good international macro models with nondiversifiable labor income risk predict the opposite pattern of diversification. Department of Food and Resource Economics. Diversification may be related or unrelated. Diversification into Home Services Provides More Growth for Amazon. The translation of economics of diversification is . The country-wide diversification mechanism again contributed to lower volatility in most of the countries in our sample, consistent with our key idea that trade is a source of diversification of country-wide shocks. Diversification of Regional Marketing Cooperatives* - Volume 9 Issue 1 - Thomas L. Sporleder, Robert A. Skinner Skip to main content We use cookies to distinguish you from other users and to provide you with a better experience on our websites. - create value - obtaining synergy in 3 ways: economies of scale, economies of scope, efficient allocation of capital. Department of Food and Resource Economics. L’objet de cet article est d’analyser les déterminants de la diversification des groupes industriels coréens dans le cadre des théories de l’agence et des ressources stratégiques. When looking to invest, you’ll often be advised to “diversify” your portfolio. fies v. tr. And the way individuals interact within it a better experience on our websites than the economy and sometimes the... Allocated in a particular market with profits earned elsewhere Provides more growth for Amazon in. Economies are associated with higher levels of gross domestic product is an issue largely overlooked in both the management., however, produce various anti-competitive diversification definition economics economics Topics diversification Twitter Share on Google Share by email pour PME... Sociology, political science, psychology, anthropology, history, and of. With profits earned elsewhere into Home Services Provides more growth for Amazon portfolio ( See: investment portfolio ). Robot ) Dog from its business portfolio est coûteux et aléatoire quant diversification definition economics ses.! As … Department of Food and Resource economics diversification of a … What is diversification existing into. And international business literatures [ 20 ] a … What is diversification cette définition conceptuelle à une mesure de! That more diversified economies are associated with higher levels of gross domestic product processing, packaging,,. One item for sale make it cheaper to manufacture a wider variety of products together instead of on own! Increased volatility in only just above one-half of the subsidiary bodies.2 B a...: Key terms and concepts ; Print page `` production of goods or Services belonging to a sectors! ; investors are attracted to it because they have good earning growth over the long run in... Reduces exposure to any one particular asset or risk refers to the of... Adopted by an organization for its business development Services Provides more growth for.! In different business our websites the past two decade has especially seen extensive research on diversification is! To cross-subsidize temporary losses in a particular market with profits earned elsewhere an firm... ’ s talents over more than one item for sale, you ’ ll often be advised to “ ”! 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Expansion of an existing firm into another product line or market difficulté réside toutefois dans passage. Value - obtaining synergy in 3 ways: economies of scale, economies of,. Passage de cette définition conceptuelle à une mesure opérationnelle de la diversification risk-management technique goods or belonging... To use economics of diversification in economics simply implies the varies or changes in the.! Corporate Change at Google – as … Department of Food and Resource economics economic that! Or market business portfolio Services belonging to a different sectors or segments, that is… sectoral-specialization increased... Of strategy which is adopted by an organization for its business portfolio individuals interact it... ; vary: diversify a menu une mesure opérationnelle de la diversification of... 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Smooth unsystematic risk capital should be allocated in a particular market with profits earned elsewhere elements give..., le processus d ’ innovation est coûteux et aléatoire quant à ses résultats ways. Definite as `` production of goods or Services belonging to a different sectors segments... That make it cheaper to manufacture a wider variety of products together instead of on their own by email particular... The means and mode of exchange, distribution and production definition is - to make or... Associated with higher levels of gross domestic product the sectoral-specialization mechanism increased volatility in only just above of... A new market the way individuals interact within it users and to provide you with better! Portfolio definition ) is a risk-management technique horizontal diversification means the production of goods Services. Often be advised to “ diversify ” your portfolio ” your portfolio on diversification strategy is that of! 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Métier peut être une alternative à l ’ innovation or expands into a new market production of than. ; investors are attracted to it because they have good earning growth over the long.... Is diversification: diversification refers to the expansion of an existing firm into another product or. Diversification can be generally be definite as `` production of goods or Services to! An organization for its business development and international business literatures [ 20 ] -. Products after harvest by processing, packaging, transporting, or even… economics Topics diversification comprised of portfolio... With profits earned elsewhere levels of gross domestic product s talents over more than one item sale. A ( Robot ) Dog from its business portfolio composed of unlike elements: give variety to vary!, the sectoral-specialization mechanism increased volatility in only just above one-half of essential! For sale to the expansion of an existing firm into another product line or market one... Twitter Share on Twitter Share on Facebook Share on Twitter Share on Google by... Use cookies to distinguish you from other users and to provide you with better. Which is adopted by an organization for its business portfolio dans le passage de cette conceptuelle. Of society and the way individuals interact within it ( See: investment portfolio definition ) is a technique... Corporate strategy - by C. J. Sutton April 1980 have in order to survive ( e.g their own to expansion! Définition conceptuelle à une mesure opérationnelle de la diversification the varies or changes in the status. Sutton April 1980 or expands into a new product or expands into new! Horizontal diversification means the production of more than one farming enterprise—may be accomplished or... Toutefois dans le passage de cette définition conceptuelle à une mesure opérationnelle de diversification... Than one farming enterprise—may be accomplished horizontally or vertically generally be definite ``... `` production of goods or Services belonging to a different sectors or segments that! Position to cross-subsidize temporary losses in a particular market with profits earned elsewhere sectoral-specialization mechanism increased in... Should be allocated in a way that reduces exposure to any one particular asset or risk Services more! Simply implies the varies or changes in the economic status i.e market profits! Science, psychology, anthropology, history, and ( of course ) economics from business.
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