b) advantages and disadvantages

• state the advantages of specialisation and the division of labour in regards to organising production

• higher production output per worker

• lower costs in training workers

• more products + lower costs → lower prices for consumers → more sales → higher profits for firms

• higher profits for firms → potential pay rises for workers

• higher profits for firms → firm expansion → more low-skilled jobs available

• state the disadvantages of specialisation and the division of labour in regards to organising production

• task repetition → worker boredom + loss of motivation

• worker boredom + loss of motivation → lower productivity → poorer production quality

• worker boredom + loss of motivation → higher worker turnover rate

• state the advantages of specialisation and the division of labour in regards to trade

• more products + lower costs → lower prices for consumers → more sales → more exports

• more exports → higher income for imports → more available goods

• more exports → national economic growth

• national economic growth → higher consumer incomes + higher standard of living

• state the disadvantages of specialisation and the division of labour in regards to trade

• firms may be outcompeted and unable to sell globally → firms close down → unemployment

• dependency on other countries goods → economic problems if conflicts or natural disasters arise