Disadvantages of specialisation

• How does specialisation affect efficiency and productivity?

  It makes them more efficient and productive
• What must workers do in response to job displacement?

  They must reskill for new roles
• How does automation lead to job displacement?

  Machines perform tasks previously done by humans
• What does specialisation in economics mean?

  Concentrating on specific tasks or industries
• What does it mean for a country to specialize in production?

  It means focusing on producing certain goods efficiently
• What is the result of a factory specialising in car production?

  Faster output and lower costs
• How does the UK’s production of phones compare to its production of cars?

  UK gives up fewer cars to produce phones
• How does specialisation contribute to economic growth?

  It allows for trade, boosting overall wealth
• What is a risk of overdependence on a single industry?

  The entire local economy suffers
• How does overdependence on a single industry affect a town?

  If that sector struggles, jobs are lost
• How does overdependence contrast with specialization's efficiency?

  Diversification is crucial for economic stability
• What are the implications of overdependence on a single industry?

  • Risk to local economy if sector struggles
  • Job losses in the community
  • Need for diversification for stability
• What is a potential requirement for workers affected by automation?

  Workers may need to reskill for new roles
• What happens if a specialized economy faces problems in its main sector?

  It can impact the entire economy
• How can focusing too much on one industry affect a country?

  Problems in that sector can harm the economy.
• What negative effect can automation have on workers?

  It can cause unemployment for certain roles
• What is one positive impact of automation?

  Increased efficiency in industries
• What does comparative advantage explain?

  Why countries should specialize in production
• What is the relationship between automation and unemployment?

  Automation can lead to increased unemployment rates
• What is the contrast between specialization and diversification in the market?

  • Specialization increases efficiency.
  • Diversification is crucial for stability.
  • Diversification minimizes economic dependence on one sector.
• Why is it beneficial for a country to focus on what it produces more efficiently?

  It allows for better resource allocation and trade
• What is job displacement due to automation?

  Replacement of human tasks by machines
• If one country is better at everything, what should it still do according to comparative advantage?

  Focus on what it does best relative to others
• What is a characteristic of specialized economies?

  They are efficient but vulnerable
• How can a price drop in a main export affect a specialized economy?

  It can create economic shocks
• What advantage do diversified economies have over specialized economies?

  They ensure more stability
• What increases the vulnerability of specialized economies?

  Increased reliance on specific sectors
• Why is diversification important for an economy?

  It prevents economic dependence on a single sector.
• What happens to a town that relies solely on fishing if fish stocks decline?

  Many people lose their jobs
• What happens to a town that relies solely on coal mining if demand drops?

  Everyone loses their jobs.
• What is a challenge for specialized economies when consumer demand shifts?

  Difficulty adapting to changing markets
• How do diversified economies differ from specialized economies?

  They share risks across multiple sectors
• How do global shocks disproportionately affect specialized countries?

  They are more reliant on specific sectors
• What are the key benefits of specialisation in economics?

  • Increased efficiency
  • Higher productivity
  • Faster output
  • Lower production costs
  • Enhanced trade opportunities
  • Boosted economic growth
• What are global shocks that can affect specialized economies?

  Pandemics or trade wars
• What does diversification minimize in an economy?

  It minimizes overall risk.
• How does specialization differ from automation in terms of employment?

  Specialization concentrates employment in specific sectors
• What is a risk associated with decreased market diversity?

  It can cripple the entire economy.
• What is the relationship between productivity and comparative advantage?

  Higher productivity does not always mean better specialization