Final answer:
An industry rotation strategy in agriculture involves farmers rotating crops to improve soil nutrients and break pest cycles, for instance, alternating corn with soybeans, which improves soil health and reduces pesticide use.
Step-by-step explanation:
The statement that best describes an industry rotation strategy refers to the systematic process of shifting investment focus from one sector of the economy to another, aiming to capitalize on cyclical trends. In the context of agriculture, crop rotation is an excellent example, wherein farmers alternate planting different types of crops in the same field across various seasons. This agricultural practice aims to improve soil health, enhance nutrient levels, break pest cycles, and mitigate production risks through diversification.
Farmers, for instance, may rotate corn, a cereal crop that consumes substantial soil nitrogen, with soybeans, a legume that replenishes nitrogen in the soil. The benefits of such an industry rotation strategy include reduced need for chemical fertilizers and pesticides, protection of water quality, and increased crop yields. By strategically rotating crops, farmers can achieve both environmental and economic sustainability in their farming practices, analogous to how businesses can benefit from focusing on their core competencies rather than diversifying too broadly.