1.2.4 Specialisation

Question 1

What is specialisation?

Answer 1

When economic units such as individuals, firms, regions or countries concentrate on producing specific goods/ services.

Question 2

What is the division of labour?

Answer 2

When workers are assigned specific tasks to do in the workplace.

Question 3

What are positives of division of labour/ specialisation?

Answer 3

Improves performance and increases efficiency, cuts down production costs creating a competitive advantage, greater understanding, technical economies of scale.

Question 4

What are negatives of division of labour/ specialisation?

Answer 4

Work can become monotonous, could lead to high absenteeism and labour turnover, reduces flexibility, threat of structural unemployment if an industry goes into decline.

Question 5

What are the benefits of specialisation by countries?

Answer 5

Allows for trade, improve GDP, economies of scale, greater choice for consumers, better quality goods, interdependence so better relations between countries.

Question 6

What are the costs of specialisation by countries?

Answer 6

Over-reliance on a limited number of industries, risk of structural unemployment, reliance on other nations.