Title: What is Specialization? - Definition | Meaning | Example
Headings: What is Specialization?
What is Specialization?
What Does Specialization Mean?
Example
Summary Definition

Content: What Does Specialization Mean? What is the definition of specialization? Countries specialize in the production of certain goods and services, thereby gaining a competitive advantage. Productive efficiency is the outcome of specialization because native resources are used effectively to produce a good or a service that foreign countries need more resources to produce or they cannot produce at all. In this context, specializing enables international trade, i.e. the exchange of goods between foreign countries. The benefits of specialization for consumers is a greater selection of goods, whereas for businesses is greater economic efficiency and opportunities for growth for competing firms in the same industry. Let’s look at an example. Example
Company A is a Greek wine producer and exporter in several countries around the world. The company focuses on different segments in the market, based on what customers need, and it uses market segmentation to meet its objectives by effectively using its resources. Also, since the market segments are independent, the risk of failure is mitigated through diversification.