Specialization
A method of production where a business or area focuses on the production of a limited scope of products or services in order to gain greater degrees of productive efficiency within the entire system of businesses or areas. Many countries specialize in producing the goods and services that are native to their part of the world. This specialization is the basis of global trade as few countries produce enough goods to be completely self-sufficient. Investopedia Says:
Specialization also occurs within the United States, for example, as citrus goods naturally occur in the warmer climate of the South and West, many grain products come from the farms of the Midwest and maple syrup comes from the maple trees of Vermont and New Hampshire.
Specialization can also refer to production, for example when in a factory an assembly line is organized in a specialized manner rather than producing the entire product at one production station. Related Terms:
Absolute Advantage
Break Issue
Comparative Advantage
Globalization
Glocalization
Opportunity Cost
Trade |