Mellorando
Banned
Specialization can increase the productivity of and provide a comparative advantage for a firm or economy. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production. Specialization Leads to Economies of Scale, The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good. Or put another way, the same time and the same money allows for the production of more goods.
Specialization leads to a much more efficient supply chain and opens up greater production possibilities. Individual companies are able to produce specific cell phone parts at a lower opportunity cost than if one company were to build up the infrastructure required to manufacture every single part themselves.
Advantages
1 Workers become quicker at producing
goods (more productive)
2 An increase in productivity causes the
cost if production to decrease (lower
average costs)
3 Production levels are increased
4 Specialised workers tend to get higher
pay
5 Workers' specific skills will be improved
More motivation from job satisfaction
Disadvantages
1 Greater cost of training workers
2 Quality may suffer if workers become
bored by the lack of variety in their job
3 More expensive workers
4 Boredom for the worker as they do the
same job everyday
5 Workers' skills may suffer as they are
only doing one job
6 Workers may eventually be replaced by
machinery
Specialization leads to a much more efficient supply chain and opens up greater production possibilities. Individual companies are able to produce specific cell phone parts at a lower opportunity cost than if one company were to build up the infrastructure required to manufacture every single part themselves.
Advantages
1 Workers become quicker at producing
goods (more productive)
2 An increase in productivity causes the
cost if production to decrease (lower
average costs)
3 Production levels are increased
4 Specialised workers tend to get higher
pay
5 Workers' specific skills will be improved
More motivation from job satisfaction
Disadvantages
1 Greater cost of training workers
2 Quality may suffer if workers become
bored by the lack of variety in their job
3 More expensive workers
4 Boredom for the worker as they do the
same job everyday
5 Workers' skills may suffer as they are
only doing one job
6 Workers may eventually be replaced by
machinery