4.1 - 4.2 Specialisation, division of labour and exchange

Question 1

Division of labour

Answer 1

Where the production process is broken down into smaller separate tasks.

Question 2

Specialisation

Answer 2

The process by which individual, firms or regions concentrate their efforts on producing a narrow range of goods and services in which they have a comparative advantage.

Question 3

Comparative advantage

Answer 3

Where a country produces something that they have many of that another country isn’t as suited to produce and export. (e.g - India produces silk which is their comparative advantage against other countries that are not as suited produce and export silk)