Specialisation & Division of Labour

• Specialization is the concentration of production on a narrow range of goods and services.
• Specialization can lead to higher output and maximization of output as resources are focused on efficient production.
• Specialization requires mutually beneficial trade, as countries specializing in only a few goods and services need to import those goods and services they're not efficient at producing and export the good or service they are efficient at producing.
• Export revenues can rise and economic growth can rise with higher output.
• Higher output from specialization can lead to higher living standards, greater choice for consumers, and more job opportunities.
• Workers are at risk of long-term unemployment through division of labor as they become highly specialized in a narrow part of a good or service.
• If technology advances and the job can be done by a machine instead, workers could lose their job.
• Another problem with division of labor is that it can lead to high worker turnover as workers become demotivated and leave the business.
• Specialization can lead to high rates of unemployment if foreign countries or firms become more efficient at producing a good or service.
• Division of labor can lead to the production of highly standardized goods and services, losing the unique touch that consumers often prefer.
• The benefits of division of labor include high worker productivity, time savings, lower cost of production, maximized profitability, and higher quality of goods and services produced.
• Division of labor, which comes after specialization, involves breaking down the production process into separate tasks, with firms dividing their workforce into very narrow production tasks.
• The major problem with division of labor is that performing the same task over and over can demotivate workers and eventually lead to a decline in productivity and a rise in cost of production.
• Specialization can lead to greater allocative efficiency as resources will go to countries, regions, and companies who are the most efficient at producing.
• Specialization can help overcome the problem of scarcity as resources will be taken away from inefficient production towards efficient production to maximize output.
• Specialization can drive greater productivity as workers specialize they're going to be used better and to their maximum productive potential.
• Higher productivity from specialization can lower a firm's cost of production, which can be passed on to consumers via lower prices.
• Specialization can lead to higher quality, quantity, innovations, improvements and higher environmental, social, economic, cultural, legal, political, financial, health & education sustainability as firms focus on producing a narrow range of goods and services they're most efficient at.(QQI Imrpov. +ESECLPFHE sustainability