Title: Specialisation and division of labour - Economics Help
Headings: Specialisation and division of labour
Specialisation and division of labour
Examples of specialisation and division of labour
Specialisation within economies
Problems of specialisation in production
Problems of specialisation in trade
Related

Content: Some workers will design the cars
Some will work on testing cars
Some will work on marketing. Some workers will work on different sections of the assembly line. Their job may be highly specific such as putting on tyres e.t.c. Specialisation within economies
Specialisation can also mean that individual countries can produce certain goods that they are best at producing and then exchange them with other countries. The theory of comparative advantage states countries should specialise in producing those goods where they have a lower opportunity cost (relatively best at producing)
Specialisation requires trade. Specialisation and trade mean that countries that produce no oil can consume oil products and countries with large reserves of raw materials can export them in exchange for other goods that they need. This helps reduce the problem of scarcity in individual countries and enables countries PPF to shift outwards. If there is increased trade there will also be increased competition. This means that domestic monopolies will now face competition from abroad, therefore, they have increased incentives to cut prices and be efficient. Problems of specialisation in production
However, there are problems of specialisation.