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What is specialisation?
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What is specialisation?
Specialisation occurs when individuals, businesses, regions, or countries focus on producing a particular good or service.
True or False?
Superior resource availability is a factor that allows a country to specialise, such as having a lower quality or quantity of a resource.
False.
Superior resource availability is a factor that allows a country to specialise, such as having a higher quality or quantity of a resource.
True or False?
Cheaper production methods, such as using machinery, technology, or large labour forces, prevent a country from specialising.
False.
Cheaper production methods, such as using machinery, technology, or large labor forces, allow a country to specialise by producing goods at lower costs.
True or False?
National specialisation increases productivity.
True.
National specialisation increases productivity.
How does specialisation benefit exports?
Higher productivity lowers the cost per unit for firms, making their goods more competitive internationally for exports.
Define the term structural unemployment.
Structural unemployment occurs when entire industries close due to an inability to compete globally. Workers in those industries are unemployed and their skill is no longer required.
What is one disadvantage of specialisation?
Specialisation may create overdependency on other countries' resources, which can cause problems if conflicts arise.
True or False?
Specialisation using a country's own resources leads to resource depletion over time.
True.
Specialisation using a country's own resources leads to resource depletion over time.
How does specialisation impact market power?
As multinational firms grow in size, they increase their market power. They can dictate prices and output in many regions, and influence governments.
How does specialisation affect infant industries?
Start-up firms in developing countries (infant industries) find it harder to compete due to global competition, and often require government support.
True of False?
Over-specialisation in developing economies rarely occurs.
False.
Over-specialisation in developing economies often occurs as they lack finance to diversify, making their GDP dependent on commodity prices.