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: This specialization requires workers to give up performing other tasks at which they are not as skilled, leaving those jobs to others who are better suited for them. Specialization is related to another economic concept, division of labor, discussed at great length by Adam Smith, the 18th-century Scottish economist and author of “The Wealth of Nations.” Smith illustrated the benefits of specialization and a division of labor when describing a pin factory, in which each worker performs a single specialized task. 00:00
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One worker measures wire, another cuts it, one points it, others make the head and so on. Through this process, workers produced thousands more pins than if each worker made whole pins independently. 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.