Specialisation

Question 1

What is specialisation?

Answer 1

Specialisation- individual 👨, firm, region 🌎 or country 🌍 concentrate/focus production on limited range of 🚘 & 🧹

Question 2

What are the advantages of specialisation?

Answer 2

1) Increases productivity (output per unit employed) & living standards
2) 🚘 & 🧹 produced- used for trade with other 🌍

Question 3

What are the disadvantages of specialisation?

Answer 3

1) If demand for specialised 🚘 or 🧹 ⬇️ -> ⬆️ structural unemployment- workers inability to work elsewhere (workers- limited range of skills)
2) Countries 🌍 specialising in production & export of minerals- may face resource depletion
3) Developing 🌍 face unfavourable rate of exchange- their goods low price- foreign goods 💵