Diversification
What Diversification means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Diversification
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Reference: Pearson Edexcel
A wider product range that cushions the firm against sector-specific economic shocks, which over-reliance on a narrow product range lacks.
Spreading risk across different markets, which conglomerate integration helps to achieve.
Topics that use Diversification
- Methods of growth (Pearson Edexcel A-Level)
- Specialisation (Pearson Edexcel A-Level)
Related terms
- Horizontal integration
- Mergers and acquisitions
- Organic growth
- Specialisation
- Brand identity
- Conglomerate integration
- Inorganic growth
- Vertical integration
Using Diversification in the exam
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