MICRO 2 - SPECIALISATION AND DIVISION OF LABOUR

Question 1

What is specialisation?

Answer 1

Specialisation is the concentration of a worker, firm or country on producing a narrow range of goods and services.

Question 2

What is Division Of Labour?

Answer 2

It is the specialisation by workers on a particular part of the production process.

Question 3

What does specialisation need in order to work.

Answer 3

Monetary transactions, so they can import the goods they don’t make.

Question 4

What are the advantages of specialisation (G2R)?

Answer 4

Growth (due to trade)

Greater Output + Quality

Range of G/S - All firms specialise, we all have lots together.

Question 5

What are the disadvantages of specialisation (F2NOD)?

Answer 5

Finite Resources, Fashion,

National Interdependence (If a trade partner can’t trade anymore, it stops.)

Overreliance on weather. (Tourism, crops)

De-Industrialisation - If other countries can produce cheaper we get no trade.

Question 6

What are the advantages of division of labour? (C2PET)

Answer 6

Consumers - they benefit from cheaper prices

Cost effective - Capital goods are used more efficiently with skilled workers.

Production - More efficient

Experience - Better workers, quality of output, feel valued.

Time - Time saved on work.

Question 7

What are the disadvantages of Division Of Labour (P2BT)?

Answer 7

Payments - Low

Poor Conditions - Low working conditions and long hours.

Boredom - Bored workers, not valued

Too Reliant - on other nations, market failure can leave ppl unemployed.