If you owned a fruit stand and you only sold oranges, then you would be in a bad spot if a hurricane wiped out all of the orange groves that you get your fruit from. However, if you sold a bunch of different fruits alongside oranges like bananas, apples, and berries, then you would still be able to make money when you couldn’t get oranges to sell. You could also use different fruit suppliers so that if something were to happen to the fruit crops in one place you would still be able to get fruit to sell from one of your other suppliers. This is a simple example of the concept of diversification.
