2.1 specialisation and trade

Question 1

what is specialisation and division?

Answer 1

when each worker is split up into specific tasks in a production process and a firm/country focusing on the production of certain goods.

Question 2

what are the advantages of specialisation and division?

Answer 2

*higher output and higher quality since production focusesnon what people are best at
*greater variety of goods
*more opportunities for economies of scale so the size of the market increases

Question 3

what are the disadvantages of specialisation and division?

Answer 3

*work becomes repetitive which could lower the motivation of workers which could affect quality and productivity
*more structural unemployment as skills may not be transferrable
*variety could decrease
*high employee turnover