Countries that export a diversified selection of export products do not seem to be at much risk of experiencing immiserizing growth.

Question

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Immiserizing growth occurs when a country increases its exports so much that the world price of the exported products falls below the country's cost of production. This leads to a decrease in the country's welfare, as the revenue gained from exporting is lower than the cost of producing the goods. If a country has a diversified selection of export products, it is less likely to experience immiserizing growth, as a decline in the price of one product may be offset by an increase in the price of another. Therefore, countries that export a diverse range of products are less at risk of experiencing immiserizing growth.

Countries That Export a Diversified Selection of Export Products Do