specialisation

• specialisation can also improve the productivity of a workforce
• specialisation is where an individual or company focuses on the production on a specific good or service
• division of labour is a type of specialisation where production is split into different tasks and specific workers are allocated each task
• advantages of specialisation 


  improved output through greater training, better quality, economies of scale can be achieved, more efficient, training costs are reduced
• disadvantages of specialisation


  repetitive tasks can lead to boredom and high workforce turn over, countries can become less self-sufficient which can threaten countries trade, loss of flexibility and workers may struggle to find jobs elsewhere - this is structural unemployment
• specialisation means that trade is vital for countries and economies to survive
• countries may trade through barter systems, however this is inefficient as it takes time and effort to find countries to barter with
• money is the most effect way of trading as it is a medium of exchange
• money can be used as a measure of value between countries
• money can be a store of value, often used by workers whose wages will not change in price in the short term
• money can be used as a method of deferred payment