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
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Content: 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. Firstly if workers do specific tasks, it may become boring and their productivity may fall as a result. High levels of specialisation could lead to possible diseconomies of scale. If an assembly line becomes highly specialised, production could be brought to a halt if there is a blockage in one area. It can be beneficial if there are more people specialised in different aspects. Problems of specialisation in trade
In terms of trade, poor countries may be encouraged to use up their non-renewable resources to sell to developing countries, therefore in the long term we could run out of non-renewable resources.