Yes it does. Unemployment is when a person isn't currently hired at a work pleace. If people are unemployed they are making no income so less people are in need of products so it lowers the demand.
The answer to this question is <span>diminishing market opportunities and stagnating sales in its principal business.
Companies should only consider diversification if the previous product that thye make is already succesful and they have enough capital to pursue another segment of the market. If the sales is still stagnant, it best to use the capital to reinvest in the current product until the growth is assured. (or even just stop the production for that product and start pursuing another)</span>
