Which is a problem caused by having an export economy? A. They rely too much on import tariffs. B. African businesses have to compete with each other. C. Export economies lead to quick industrialization. D. It causes a reliance on world market prices.
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Export economies can create a dependence on the fluctuations of world market prices, making them vulnerable to external shocks and downturns, which can impact economic stability. For instance, if the global demand for a key export drops, it can lead to significant financial challenges for a country reliant on that product. Additionally, businesses in these economies might prioritize exporting over local needs, potentially neglecting their domestic markets. This can stifle local industry growth and entrepreneurship, leading to an imbalance within the economy where local needs are overlooked in favor of international trade.
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