Economic dependence

Economic dependence

When the costs and/or revenues of one project depend on those of another.

Economic Dependence

A situation in which the success of one thing depends on the success of another. This may occur within a company; for example, a project may not have funding unless another project is successful. Likewise it may occur within an economy; for example, an agricultural economy may be excessively dependent on the value of corn such that if the price of corn drops it can have serious repercussions on that economy. Many companies and economies seek to diversify to avoid economic dependence.