Title: Specialization Definition
Headings: Specialization
Specialization
What Is Specialization?
Key Takeaways
Specialization
Understanding Specialization
Microeconomic Specialization
Macroeconomic Specialization

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Amy Drury is an investment banking instructor, financial writer, and a teacher of professional qualifications. Article Reviewed on September 13, 2020
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Amy Drury
Updated Sep 13, 2020
What Is Specialization? Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade them for other goods and services. This specialization is thus the basis of global trade, as few countries have enough production capacity to be completely self-sustaining. Key Takeaways
Specialization in business involves focusing on one product or a limited scope of products so as to become more efficient. Specialization can increase the productivity of and provide a comparative advantage for a firm or economy. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production. 1:19
Specialization
Understanding Specialization
Specialization is an agreement within a community, organization, or larger group in which each of the members best suited for a specific activity assumes responsibility for its successful execution.