6.1 specialisation

Question 1

Definition of specialisation

Answer 1

when a country focuses on the production of a narrow range of goods or services to increase its efficiency.

Question 2

Define absolute advantange

Answer 2

one country can produce more efficiently than another

(more output same resources, same output less resources)

Question 3

Define comparative adv

Answer 3

when one country can produce a good at a lower opportunity cost than anotehr

Question 4

Adv of specialisation

Answer 4

Higher levels of outpuit

Increased employment and income

Economic growth and improved living standards

Opportunities for internaitonal trade

Increased revenue to govt

Economies of scale

Question 5

Disadv of specialziation

Answer 5

Structural unemployment

Over-exploitation of resources

hreat of foreign competition

Risk of over-specialisation

Strategic vulnerability

Question 6

Explain how structural unemployment may be caused cuza specialisation

Answer 6

As the country moves towards specialisation, the workers in the declining industries will be put out of work.

Question 7

Why is there a threat of foreign comp with specialisaiton

Answer 7

non-specialised industries of a country will face fierce competition from the foreign countries that specialise in them.

Question 8

what is the risk of over-specialisation

Answer 8

Any global economic change will greatly affect highly specialised countries since they only focus on one product

not diversified enough

Question 9

Explain the strategic vulnerability of specialisation

Answer 9

relying on other countries for vital goods and services makes a country dependent on those countries.

Question 9

Explain the strategic vulnerability of specialisation

Answer 9

relying on other countries for vital goods and services makes a country dependent on those countries.