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specialisation and division of labour 1.1.5 - Coggle Diagram
specialisation and division of labour 1.1.5
where a company or individual concentrates on a particular product or task.
benefits of specialisation
increased variety- more and better choices
higher output- total output of goods and services can increase and quality can be improved
a bigger market- trade increases so size of market increases.
increased competition, lower prices- incentive to minimize costs to remain competitive. competition decreases prices and maintains low inflation
division of labour
production of a good is broken up into many seperate tasks performed by different people who are specialised for it.
increases the output per person
therefore reduces costs
limitations
may reduce effieciency
increase unit costs
because repetitive and unrewarding work causes low motivation
risks that the machine can break down in one part causing all parts to stop
more machines/employees stops this
costs of specialisation
over reliance on a few industries
reliance on other countries
less developed countries may be discouraged from moving from specializing