14-Specialization & Division of Labour

Question 1

Disadvantage of Specialization

Answer 1

• DEMAND for their GOODS FALLS → LOWER EXPORTS, LOWER GROWTH RATED & STRUCTURAL UNEMPLOYMENT
  → makes Country OVER-DEPENDENT on IMPORTED GOODS
• Country Specializing in PRODUCTION & EXPORTS of Minerals → Problems of Resource DEPLETION

Question 1

Advantage of Specialization

Answer 1

• Increases PRODUCTIVITY → HIGHER LIVING STANDARDS across the WORLD
• Uk specializes in medicine → These goods are TRADED for OTHER GOODS by OTHER COUNTRIES → Increased GLOBAL OUTPUT → Countries Benefit from GREATER CHOICE, LOWER PRICE & HIGHER LIVING STANDARDS

Question 2

Advantage of Division of Labour

Answer 2

• REPETITION of Tasks → INCREASED LABOUR PRODUCTIVITY → MORE SKILLED & EFFICIENT WORKERS
• don’t have to keep MOVING from 1 task to another & CHANGING TOOLS → NO TIME WASTED
• Workers CONCENTRATES on Jobs that best SUITS THEIR SKILLS
• Workers ONLY Trained for SPECIFIC TASK → TIME & EXPENSE IS REDUCED
• Use of Robots in Production line where some task REPEATS → CHEAPER compared to LABOR
• WAGES remains SAME but LABOUR PRODUCTIVITY INCREASES → FALL in AVERAGE COST and INCREASES PROFITS

Question 3

Disadvantage of Division of Labour

Answer 3

• REPETITION of TASKS → MONOTOMY & BOREDOM → DECREASED MOTIVATION & LOWER PRODUCTIVITY
  → HIGH STAFF TURNOVER → INCREASED RECRUITMENT & SELECTION COST
• Production Process is INTERDEPENDENT → ANY INTERUPTION will have CHAIN EFFECT → TEMPORARY STOPAGE of Workers
  Eg- STRIKE by 1 group of Workers
• BREAKING DOWN PRODUCTION LINE into Different Tasks → EASIER TO REPLACE LABOR WITH MACHINE → STRUCTURAL UNEMPLYMENT
• Workers Trained in 1 PARTICULAR TASK → LIMITED SKILLS → Hard to FIND NEW JOB If made REDUNDANT as they are OCCUPATIONALLY IMMOBILE