What does primary product dependency indicate for developing countries?

Primary product dependency refers to a situation where a country's economy is heavily reliant on exporting raw materials or primary products, such as agricultural goods, minerals, or other natural resources. This type of dependency indicates that developing countries might face significant risks associated with their economic stability.

When a developing country depends on primary products for export revenue, it often encounters vulnerability to fluctuations in global commodity prices, which can be volatile and unpredictable. For instance, if the price of a primary product falls sharply due to global market changes, the country's revenue can plummet, leading to economic instability. Additionally, such dependency can limit economic growth and diversification, making the country susceptible to external shocks and reducing its resilience against economic challenges.

In contrast, the other options suggest scenarios that do not accurately represent the challenges posed by primary product dependency. Reliance on diversified exports implies economic resilience, which is not the case for countries that depend heavily on a narrow range of primary exports. Claims of high sustainability of export products or strong economic independence through varied industries do not capture the reality faced by nations entrenched in primary product dependency, as they often lack the diversification needed to buffer against economic downturns.