Specialization
Specialization refers
to concentration of a country’s productive resources on a particular commodity.
There are five levels of specialization.
1.
Specialization
by Industry
Industries specialize on a particular
product.
Examples; Oil industry, Clothing industry,
Chemicals industry.
2.
Specialization
by Firms
Firms specialize on a particular product or
its components.
Examples; Spinning, Weaving, Dyeing, Fabric
printing.
3.
Specialization
by Workers (Division of labour)
Workers specialize on a particular task or
job.
4.
Specialization
by Regions
Regions specialize on a particular product.
Examples;
Footwear in Leicester, Cotton in Lancashire, Insurance in London ,
Boat Building
in Sunderland .
5.
International
Specialization
Countries
specialize on a particular product.
Examples;
Brazil for Coffee ,
France for Perfumes, New Zealand for Milk products, Japan
Division
of Labour
Division
of Labour refers to the break up of production process into small tasks to be
done by a different worker.
The
principle of Division of Labour was introduced by Adam Smith, the father of
Economics. He suggested
that without any help one worker could produce only ten pins in one day.
However, in a pin factory where each worker performs only one task, ten workers
applying division of labour principle, could produce a daily total of 48 000
pins. Output per person (productivity) rose from 10 to 4800 when the division
of labour principle was used.
Advantages of Division of Labour
1.
It makes
specialist workers quicker
2.
It
increase efficiency of labour
3.
It gives
workers a suitable job
4.
It makes
workers perfect
5.
It leads
to an increased pay for labours
6.
It leads
to better quality goods
7.
It saves
time and tools
8.
It makes
production more cheaper
9.
It brings
an enormous increase in output
10. It saves money invested on training
11. It leads to full utilization of tools and
machinery
12. It makes invention possible
Disadvantages of Division of Labour
1.
It leads
to monotony
2.
It
restricts mobility of labour
3.
It leads
to loss of pride and responsibility
4.
It leads
to loss of craftsmanship and skills
5.
It leads
to factory evils like long hours of work
6.
It increases
risk of unemployment due to automation
7.
It brings
the problems of interdependence
8.
It
eliminates flexibility
9.
It
increases cost of training
10. It leads to lower quality goods due to
boredom and mass production
Limitations to Division of Labour
1.
Technical
Problem
Some
capital equipment can not be divided into individual operations.
2.
Size of
the Market
Division
of labour is limited by the size of the market. It can only be applied where
there is a mass demand for the product.
3.
Scarcity
of Capital
Division
of labour requires a heavy expenditure on capital investment. Hence, Poor firms
or countries can not apply division of labour.
4.
Transport
There
must be a suitable transport system to distribute the goods from the place of
production to the place of consumption.
5.
Barter
Economy
Division
of Labour can not be used in the Barter Economy where goods are exchanged for
goods.
Automation
Automation
refers to intensive use of machinery in the production process. It helps to
produce more goods at lower cost leading to lower consumer price. On the other
hand, it requires fewer labours and often leads to unemployment.
Mass Production
Mass
Production refers to making components or products in comparatively large
quantities using specialized machines on a continuous basis.
