foreign market, foreign companies may transfer manufacturing to that country to avoid the loss of a lucrative or potential market. Diversification prices of many primary products, such as oil and coffee, fluctuate markedly. Price variations due to uncontrollable factors such as weather affecting supply or business cycles abroad affecting demand-can wreak havoc on economies on the export of primary products. This is especially true for many developing countries that must rely on only one or a few commodities. Frequently, they are caught in a feast-or-famine cycle, it were: able to afford foreign luxuries one year but unable to find the funds for replace- ment parts for essential equipment the next Contrary to expectations, a greater dependence on manufacturing does not guarantee diversification of export The population of many developing economies is small; a move to manufacturing may shift dependence com one or two agricultural commodities to one or two manufactured products, which face petitive risks and potential obsolescence.