Specialization and Exchange, Division of Labour

HideShow resource information

Specialization and exchange

Problem of scarcity can be addressed by specialization.

Specialization = the concentration by worker or workers, firm, region or whole economy on a narrow range of goods and services.

Exchange = the process by which goods and services are traded.

Specialization produces a range of benefits to both countries involved in exchange:

  • An increase in the amount of goods and services produced.
  • Exchange between developed and developing countries.
  • A widening of the range of goods that are avaliable in an economy.

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all The reasons why individuals, organisations and societies having to make choices resources »