Diversification can serve as a risk management strategy, but risk can also hamper diversification.

Risk factors in diversification

Box 2 gives an overview of risk factors in diversification.4.

Risk is a key factor in the socio economic realities of diversification.

Diversification

(b) An allocation to high yield bonds will provide further diversification benefits to the portfolio, more than compensating for the risk of this asset category

(h) Contributing to vertical and horizontal diversification in commodity dependent countries and promoting the use of risk management instruments in favour of producers and exporters

(h) Contributing to vertical and horizontal diversification in commodity dependent countries and promoting the use of risk management instruments in favour of producers and exporters

6350 Import diversification

B. Diversification experiences

Finance for diversification

(c) Client diversification and

Enterprise level diversification patterns

The Division will monitor developments in commodity markets and foster a new thrust to international cooperation and partnership in commodities development, diversification, commodity related financing and risk management.

Companies' motives for investing abroad include access to markets, natural resources and strategic assets such as brand names and technology, as well as risk diversification and improving efficiency.

Commodity dependence was a continuing problem in many developing countries, and for them diversification was needed so as to reduce the risk of marginalization in the world economy.

Several delegations referred to risk management tools and commodity securitization mechanisms which had an important role to play, especially in the newly liberalizing markets, and could supplement diversification efforts.

5.2 Diversification of intervention options

DIVERSIFICATION IN COMMODITY DEPENDENT COUNTRIES

DIVERSIFICATION IN COMMODITY DEPENDENT COUNTRIES

Financing of diversification in Colombia

H. Diversification of African economies

Economic and trade diversification could be crucial, and donor commitments to investment in economic diversification could be essential.

3. Diversification in commodity dependent countries

Social and environmental factors in diversification

A. Diversification in commodity dependent countries

Some advice from NGOs about diversification

B. Enterprise sector strategies in diversification

Government policies and firms diversification decisions

2. Agenda for commodity based diversification

This diversification is an important achievement.

Various forms of domestic resource mobilization for diversification (e.g. taxes and levies earmarked for diversification) were mentioned in this connection.

This supports income generation and diversification activities.

The international trading environment and commodity diversification

The enterprise sector and developments in diversification

Item 3 Diversification in commodity dependent countries

III. RELEVANT AGENTS AND ACTORS IN DIVERSIFICATION

Foreign capital is another means for diversification.

(e) Support Africa apos s diversification efforts

A fundamental principle of financial theory diversification or risk spreading implies that interest in the new contracts will be high. People and businesses in New York, for example, are overexposed to their local real estate risks, so they should reduce this risk by selling New York home price futures.

Agenda item 3 Diversification in commodity dependent countries

B. Enterprise sector strategies in diversification 39 54

Malaysia s diversification The importance of research and development

Box 7 Mining led diversification and local communities

Implications of the Uruguay Round for vertical diversification