What are the risks associated with only exporting goods to one country?
1 Answer
Oct 25, 2015
Exporting to only one country creates dependency. If any nation exports to only one country it will begin to depend on that country for trade. If that country experiences recession.the exporter will be directly affected by this since that was it's only buyer.The amount of products being sold may decrease as their affording capability has decreased.Another scenario could be one in which the sole buyer takes advantage of the situation and demands prices that may end up harming the seller.