Title: What Is the Meaning of Specialization in Economics? | Bizfluent
Headings: What Is the Meaning of Specialization in Economics?
What Is the Meaning of Specialization in Economics?
TL;DR (Too Long; Didn't Read)
Specialization in the Workplace
Effect of Specialization on Production
Benefits of Specialization
The Downside of Specialization
Specialization on a National or Regional Level

Content: Effect of Specialization on Production
Specialization, as illustrated by Adam Smith’s example of the pin factory, allows workers to develop more skill in their specific tasks. Specialization increases output because workers do not lose time shifting among different tasks. Smith also believed workers with specialties were more likely to innovate, to create tools or machinery to make their tasks even more efficient. Benefits of Specialization
The benefits of specialization extend beyond individual workers. Firms that specialize in their particular products can produce larger quantities to sell. Those firms and their employees use the proceeds from the sale of those goods to buy needed goods produced by other workers and companies. The Downside of Specialization
While Adam Smith saw the advantages of specialization and division of labor, he saw a downside to them as well. He feared that monotonous assembly lines in which workers performed single tasks throughout the day could sap their creativity and spirit. He saw education as a remedy and believed that education fostered creativity and innovation in workers. Karl Marx seized on Smith’s concerns in his writings on economics.