Specialisation and the division of labour 1.1.5

Question 1

what is specialisation

Answer 1

it is the production of a limited range of goods by a company/individuals/country which means that trade is essential as its the only way they are able to access all that they need

Question 2

what is division of labour

Answer 2

this occurs when workers specialise in very specific tasks.

Question 3

What is Adam Smiths theory on the division of labour

Answer 3

he set out a view that economic growth could be achieved by increasing the division of labour. this involves in the breaking down of a task in to many small jobs with workers specialising in a particular task without the need to change jobs during the day. Saving time and making them exports. increasing productivity.

Question 4

Advantages of the Adam Smith Theory

Answer 4

• The division of labour will enable labour productivity to be increased. Workers will be much quicker, better and more efficient, this will lead to the developing skills.
  -Lead to higher quality of goods and services, since workers are more skilled
• More cost effective and time effective. improving speed and quality.
• workers may only need to be trained to do one specific task, rather than many, reducing the average cost of production

Question 5

Disadvantages of the Adam Smith Theory

Answer 5

-Boredom of workers which will result in a decrease of productivity
-Loss of skills as workers are trained in one particular task. limiting their skills. this could be a problem if they are made redundant. this can cause the workforce to suffer from structural unemployment.

Question 6

what is specialising in the production of goods and services to trade?

Answer 6

Specialisation means countries often stop making products they need, to focus on producing the products they are better at. As a result, trade must happen with other countries, and an efficient exchange system is needed.

Question 7

Advantages for Specialisation in production of goods and services to trade

Answer 7

-If the country specialises in the production of certain goods and services and then trade these in exchange for goods and services that it does not produce, then it can benefit from increased output, greater choice and lower prices.

Question 8

Disadvantages for Specialisation in production of goods and services to trade

Answer 8

-It can mean the country can become over-dependent on imported goods and services., if goods and services are uncompetitive then unemployment could rise, and the countries value for imports may persistently exceed the value of its imports.
-If there is a war, then this will cause the trade to be prevented
-Other countries specialise in non-renewable resources and these could run out which will result in a huge loss of income for that country. it would also means a loss of these resources.