b) advantages and disadvantages

b) the advantages and disadvantages of specialisation and the division of labour in organising production

c) the advantages and disadvantages of specialisation and the division of labour in trade

regarding organising production

• advantages of specialisation and the division of labour

  • higher production output per worker

  • lower costs in training workers

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

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

• disadvantages

  • task repetition = worker boredom + loss of motivation

  • worker boredom + loss of motivation = lower productivity/poorer production quality + higher worker turnover rate

regarding trade

• advantages

  • more products + lower costs = lower prices for consumers = more competitive sales + more exports

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

  • more exports = national economic growth

  • national economic growth = higher incomes + higher standard of living

• disadvantages

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

  • specialisation may cause a dependency on other countries goods = economic problems if conflicts or natural disasters arise