Title: What Is Specialization in Economics? - Online Schools Report
Headings: What Is Specialization in Economics?
What Is Specialization in Economics?
About the Author
Emma Keegan
Types of Economic Specialization
Macroeconomics
Microeconomics
Impact of Specialization
Benefits
Increased Output
Absolute Advantage
Competition and Lower Prices
Disadvantages
Loss in Demand
Complacency
Political Vulnerability

Content: Impact of Specialization
Many economists believe that economic specialization is extremely important for economic growth and efficiency, but there are some drawbacks to it as well. Below we will look at the advantages and disadvantages of specialization in an economy. Benefits
Increased Output
Think about your pencil manufacturer. How many pencils do they make a day? Do they make each individual part of the pencil? No. If the pencil manufacturer had to make each individual part, they would be putting out way fewer pencils. That is why specialization is important. It means a company can stick to making one part of a product effectively and efficiently, and they are able to increase the amount of goods they make annually. The overall supply chain becomes smoother, and the prices of goods go down.