Answer to Question #256710 in Macroeconomics for Tebo

Question

Discuss, ‘lack of a diversified production structure, compounded by the absence of complementarity in the productive base of industries are the structural rigidities to economic integration in Southern Africa’

Answer 1

Diversified production reduces losses. For example if one production make losses, it will be covered with the one that make profit. Lack of diversified production structure will lead to losses.