What are the dangers that a country faces in relying on one major source of income?

Relying on one major source of income can expose a country to significant economic vulnerabilities, such as price fluctuations and demand changes in that sector. If the source of income, like oil or tourism, experiences a downturn, it can lead to severe financial instability, unemployment, and reduced public services. Additionally, such dependence can hinder diversification, making it difficult for the economy to adapt to new opportunities or challenges. This lack of resilience can ultimately threaten national security and long-term growth.