What does it mean to diversify exports?

To diversify exports means to expand the range of goods and services that a country sells to international markets, rather than relying heavily on a limited number of products or markets. This strategy helps to reduce economic vulnerability by spreading risk, as fluctuations in demand or prices for specific exports can have less impact on the overall economy. Diversification can also enhance competitiveness and foster innovation by encouraging the development of new industries. Ultimately, it aims to create a more resilient and balanced economic structure.