Notes on Specialisation:
Specialisation:
A situation where a firm or a worker concentrate on a particular production of certain goods and not others.
Benefits:
· Increase in the output of good and service, firms become more efficient which also improves the quality and quantity
· A widening range of good and services, the specialised goods can be used to trade with another country specialised goods.
· Workers become more skilled and experience thus may be able to demand a higher wage.
Disadvantages:
· Finite resources will run out eventually so the economy will suffer
· De-industrialisation, cheap imports or capitals replaces these specialised workers. Unemployment rises.
· Bad weather can interrupt a whole year of harvest result, this creates a widespread economic panic.
· Consumers' taste may change which leave the export to be unsaleable and so the economy is in a vulnerable position
(Feel free to add more)