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 understanding specializationspecialization 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 specialization can occur on both the microeconomic level and the macroeconomic levels at the individual level specialization usually comes in the form of career or labor specialization each member of an organization or economy for example has a unique set of talents abilities skills and interests that make her uniquely able to perform a set of tasks 1labor specialization exploits these unique talents and places people in areas where they perform the best helping both the individual as well as the overall economy 1if for example a single individual excels at math but is not a proficient writer it benefits both the individual and the community if she pursues a field that relies heavily on mathematics using another example specialization can even refer to the production capacity of an individual firm when setting up a factory an assembly line is organized to increase efficiency rather than producing the entire product at one production station specialization involves focusing on a specific skill activity or production process such as a south american company harvesting bananas to become the leader or expert economies that realize specialization have a comparative advantage in the production of a good or service comparative advantage refers to the ability to produce a good or service at a lower marginal cost and opportunity cost than another good or service 1