How does specialization make us more efficient

Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade them for other goods and services. This specialization is thus the basis of global trade, as few countries have enough production capacity to be completely self-sustaining.

Specialization is an agreement within a community, organization, or larger group in which each of the members best suited for a specific activity assumes responsibility for its successful execution.

Specialization can occur on both the microeconomic level and the macroeconomic levels. At the individual level, specialization usually comes in the form of career or labor specialization. Each member of an organization or economy, for example, has a unique set of talents, abilities, skills, and interests that make her uniquely able to perform a set of tasks.

Labor specialization exploits these unique talents and places people in areas where they perform the best, helping both the individual, as well as the overall economy. If, for example, a single individual excels at math but is not a proficient writer, it benefits both the individual and the community if she pursues a field that relies heavily on mathematics.

Using another example, specialization can even refer to the production capacity of an individual firm. When setting up a factory, an assembly line is organized to increase efficiency rather than producing the entire product at one production station. Specialization involves focusing on a specific skill, activity, or production process, such as a South American company harvesting bananas, to become the leader or expert.

Economies that realize specialization have a comparative advantage in the production of a good or service.

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Comparative advantage refers to the ability to produce a good or service at a lower marginal cost and opportunity cost than another good or service.

When an economy can specialize in production, it benefits from international trade. If, for example, a country can produce bananas at a lower cost than oranges, it can choose to specialize and dedicate all its resources to the production of bananas, using some of them to trade for oranges.

Specialization also occurs within a country's borders, as is the case with the United States. For example, citrus goods grow better 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 New England.

All these areas focus on the production of these specific goods, and they trade or purchase other goods. Your Money. Personal Finance. Your Practice.How does cell specialization allow for a more efficient and comlex organism?

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Hottest Questions. Previously Viewed. Unanswered Questions. Wiki User Cell specialization is the process in which cells throughout an organism develop in different ways to perform different tasks. When this happens, each cell can devote it's energy to a specific task or job, providing more efficiency because the cells aren't trying to finish every job. It's like a factory.

Each person on an assembly line is responsible for one task so that they only have to worry about that one thing. If each person was responsible for making every single product, it leaves more room for error and would be slower and less efficient.

how does specialization make us more efficient

Cell specialization allows for a faster working organism because each cell only has to focus on performing and perfecting one task. Related Questions Asked in Biology When a cell and its organelles are organized to allow it to do a specific job?

That would be 'specialization'. Asked in Science How do enzymes help organism make efficient use of their energy? Enzymes are catalysts. They allow reactions to happen at a lower activation energy. So it requires less energy for reactions to take place, making the energy use much more efficient.

Specialization

You should take HR as a specialization while getting your MBA because it will allow you to apply for a wider range of jobs. Asked in Skeletal System How does the haversian system allow for the efficient delivery of oxygen and nutrients to the bone cells? Asked in Genetics Can a mutation be beneficial to an organism? A mutation can be beneficial to an organism. This is because some mutations allow for an organism to not be effected by certain chemicals.

Asked in Genetics What does cell specialization in multicellular organisms allow cells to do? Cell specialization in multi-cellular organisms allows cells to perform a specific task. A good example of cell specialization is blood cells. They do not have a nucleus to maximize the amount of hemoglobin that they can carry to deliver oxygen to other cells in the body.Adam Smith is considered to be the father of modern economics.

He laid out many economic theories that are studied and used to this day. One of his theories was that the division of labor through specialization will lead to growth. He described this idea as far back asin his book, An Inquiry into the Nature and Causes of the Wealth of Nations.

Smith's belief was, that as a company grows, it is able to hire more workers, and hiring more workers allows a company to divide the workers into certain roles, meaning they will have fewer responsibilities and are able to improve and specialize in one core skill.

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Once a worker becomes more efficient at their task, this will result in increased production levels, utilizing less time and less cost. Let's take a look at the terminology behind Smith's theory. Economies of scale describes a cost advantage achieved by a company when production becomes efficient.

Increasing production and lowering costs results in economies of scale because the costs are spread out over a larger number of goods. Or to look at it another way, producing additional goods does not require a significant increase in costs.

Reducing the cost of units per production is the main benefit of economies of scale.

how does specialization make us more efficient

Larger companies are more likely to achieve economies of scale than smaller companies because they are able to produce more goods and therefore can spread out costs over a larger number of goods. Specializationin economic terms, means focusing on one task rather than multiple tasks, which allows workers to perfect that one task. This is a basic concept of learning.

When a person attempts a specific task for the first time they may not be proficient at it. The more time spent on practicing or learning a skill, the better an individual gets at it.

And the more efficient. As labor is divided amongst workers, workers are able to focus on a few or even one task. The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good.

How does specialization improve an economic's standard of living?

Or put another way, the same time and the same money allows for the production of more goods. Once specialization occurs, resulting in economies of scale, a company is able to reduce the price for its goods or services because it costs less to make their goods or provide their services.

This provides a competitive advantage in the market place. An assembly line for a manufacturing company provides a useful example of specialization leading to economies of scale. Suppose a bicycle manufacturer has 10 workers each assembling 10 bicycles simultaneously.

The time for one individual to assemble a bike could be considerable. In addition, the know-how of having to put multiple pieces together requires the need for more skills. If the bicycle maker switches to an assembly line in its factory, each of the 10 workers focuses on a specialized aspect of the assembly process. For example, one worker would add the breaks, the next worker would add the pedals, and so forth. Each worker would become proficient in their specific task and allow the bike to be assembled faster as it moves down the assembly line.

This increases efficiency and allows for additional bicycles to be produced. Because production increases, the fixed costs of production such as the building and tools used to assemble the bicycles are spread over an increasing number of products, thus achieving economies of scale.

Though specialized labor is one method that leads to economies of scale, economies of scale can be achieved through a variety of means. Some areas include technology that improves efficiency, the power of buying bulk that leads to better costs, and for larger companies, better terms on financing and better transportation networks.

Economic theory and the actual implementation of those theories have proven that as a company's workforce specializes in specific skills, it leads to efficiency, which leads to more goods produced.

As more goods are produced, the cost of producing them is spread out, leading to economies of scale, which is an important competitive advantage for any company. International Markets. Your Money.Jonathan Coopersmith does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

The smartphone in your hand enables you to record a video, edit it and send it around the world. With your phone, you can navigate in cities, buy a car, track your vital signs and accomplish thousands of other tasks.

And so? Each of those activities used to demand learning specific skills and acquiring the necessary resources to do them. Making a film?

First, get a movie camera and the supporting technologies film, lights, editing equipment. Second, learn how to use them and hire a crew. Third, shoot the movie.

Fourth, develop and edit the film. Fifth, make copies and distribute them. Now all of those tasks are solved by technology. We need no longer learn the intricate details when the smartphone programmers have taken care of so much. But filmmakers are now freer to focus on their craft, and it is easier than ever to become a filmmaker. Historically, technology has made us individually dumber and individually smarter — and collectively smarter.

Technology has made us able to do more while understanding less about what we are doing, and has increased our dependence on others.

These are not recent trends, but part of the history of technology since the first humans began to farm. In recent decades, three major changes have accelerated the process, starting with the increasing pace of humans specializing in particular skills. In addition, we outsource more skills to technological tools, like a movie-making app on a smartphone, that relieve us of the challenge of learning large amounts of technical knowledge.

And many more people have access to technology than in the past, allowing them to use these tools much more readily. Specialization enables us to become very good at some activities, but that investment in learning — for example, how to be an ER nurse or computer coder — comes at the expense of other skills like how to grow your own food or build your own shelter.

In theory, everyone benefits. Specialization has moral and pragmatic consequences. Skilled workers are more likely to be employed and earn more than their unskilled counterparts. One reason the United States won World War II was that draft boards kept some trained workers, engineers and scientists working on the home front instead of sending them to fight.

A skilled machine tool operator or oil-rig roustabout contributed more to winning the war by staying at home and sticking to a specialized role than by heading to the front with a rifle. It also meant other men and some women donned uniforms and had a much greater chance of dying.The show features fact-based debate on major issues of the day, without the shouting. The smartphone in your hand enables you to record a video, edit it and send it around the world.

With your phone, you can navigate in cities, buy a car, track your vital signs and accomplish thousands of other tasks. And so? Each of those activities used to demand learning specific skills and acquiring the necessary resources to do them. Making a film? First, get a movie camera and the supporting technologies film, lights, editing equipment.

Second, learn how to use them and hire a crew. Third, shoot the movie. Fourth, develop and edit the film. Fifth, make copies and distribute them. Point Taken debates Tuesdays at 11 p. C on PBS. Photo: PBS. Now all of those tasks are solved by technology. We need no longer learn the intricate details when the smartphone programmers have taken care of so much.

But filmmakers are now freer to focus on their craft, and it is easier than ever to become a filmmaker. Historically, technology has made us individually dumber and individually smarter — and collectively smarter. Technology has made us able to do more while understanding less about what we are doing, and has increased our dependence on others.

These are not recent trends, but part of the history of technology since the first humans began to farm. In recent decades, three major changes have accelerated the process, starting with the increasing pace of humans specializing in particular skills. In addition, we outsource more skills to technological tools, like a movie-making app on a smartphone, that relieve us of the challenge of learning large amounts of technical knowledge.

And many more people have access to technology than in the past, allowing them to use these tools much more readily. Specialization enables us to become very good at some activities, but that investment in learning — for example, how to be an ER nurse or computer coder — comes at the expense of other skills like how to grow your own food or build your own shelter. In theory, everyone benefits. Specialization has moral and pragmatic consequences. Skilled workers are more likely to be employed and earn more than their unskilled counterparts.

One reason the United States won World War II was that draft boards kept some trained workers, engineers and scientists working on the home front instead of sending them to fight. A skilled machine tool operator or oil-rig roustabout contributed more to winning the war by staying at home and sticking to a specialized role than by heading to the front with a rifle.

It also meant other men and some women donned uniforms and had a much greater chance of dying. Putting the expertise in the machine lowers the barriers to entry for doing something because the person does not need to know as much. For example, contrast learning to drive a car with a manual versus an automatic transmission.Countries benefit when they specialize in producing goods for which they have a comparative advantage and engage in trade for other goods.

International trade is the exchange of capital, goods, and services across international borders or territories. Trading-partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products.

2. Opportunity Cost, Specialization, and Trade

In other words, each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations.

International Trade : Countries benefit from producing goods in which they have comparative advantage and trading them for goods in which other countries have the comparative advantage.

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To summarize, international trade benefits mostly all incumbents and generates substantial value for the global economy.

The production possibility frontier shows the combinations of output that could be produced using available inputs. In economics, the production possibility frontier PPF is a graph that shows the combinations of two commodities that could be produced using the same total amount of the factors of production.

It shows the maximum possible production level of one commodity for any production level of another, given the existing levels of the factors of production and the state of technology.

PPFs are normally drawn as extending outward around the origin, but can also be represented as a straight line.

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An economy that is operating on the PPF is productively efficient, meaning that it would be impossible to produce more of one good without decreasing the production of the other good. For example, if an economy that produces only guns and butter is operating on the PPF, the production of guns would need to be sacrificed in order to produce more butter.

If production is efficient, the economy can choose between combinations i. Production Possibilities Frontier : If production is efficient, the economy can choose between combinations on the PPF. Point X, however, is unattaible with existing resources and technology if trade does not occur.

If the economy is operating below the curve, it is operating inefficiently, because resources could be reallocated in order to produce more of one or both goods without decreasing the quantity of either. Points outside the curve are unattainable with existing resources and technology if trade does not occur with an outside producer.

The PPF will shift outwards if more inputs such as capital or labor become available or if technological progress makes it possible to produce more output with the same level of inputs. An outward shift means that more of one or both outputs can be produced without sacrificing the output of either good.

Conversely, the PPF will shift inward if the labor force shrinks, the supply of raw materials is depleted, or a natural disaster decreases the stock of physical capital. Without trade, each country consumes only what it produces. In this instance, the production possibilities frontier is also the consumption possibilities frontier.

Trade enables consumption outside the production possibility frontier. This shows that in a free trade system, the absolute quantity of goods available for consumption is higher than the quantity available under autarky. A country has an absolute advantage in the production of a good when it can produce it more efficiently than other countries. Absolute advantage refers to the ability of a country to produce a good more efficiently than other countries.

In other words, a country that has an absolute advantage can produce a good with lower marginal cost fewer materials, cheaper materials, in less time, with fewer workers, with cheaper workers, etc. Absolute advantage differs from comparative advantage, which refers to the ability of a country to produce specific goods at a lower opportunity cost.

A country with an absolute advantage can sell the good for less than a country that does not have the absolute advantage.

how does specialization make us more efficient

For example, the Canadian economy, which is rich in low cost land, has an absolute advantage in agricultural production relative to some other countries. China and other Asian economies export low-cost manufactured goods, which take advantage of their much lower unit labor costs.

What Is Specialization of Labor?

China and Consumer Electronics : Many consumer electronics are manufactured in China. China can produce such goods more efficiently, which gives it an absolute advantage relative to many countries. Imagine that Economy A can produce 5 widgets per hour with 3 workers. Economy B can produce 10 widgets per hour with 3 workers. Assuming that the workers of both economies are paid equally, Economy B has an absolute advantage over Economy A in producing widgets per hour.

This is because Economy B can produce twice as many widgets as Economy B with the same number of workers. Absolute Advantage : Party B has an absolute advantage in producing widgets.An alternative term for "division of labor," specialization of labor is an industrial relations and human resources term that refers to the segmenting of large, labor-intensive tasks into workable subtasks that may be done by different workers or different groups of workers.

Labor specialization adds economies of scale as well as other advantages and flexibility for the employer, and could potentially offer a path of advancement for a worker in the form of expanded training opportunities. As an economics term, specialization of labor applies to the application of the theory of competitive advantage on a national scale for countries that participate in international trade.

The principle of the assembly line is essentially built around the idea of labor specialization. For example, if a single worker was tasked with building an entire car, she'd require all the knowledge and skill to perform every job associated with that car's construction and likely require a level of theoretical understanding of how all the car's systems function together to ensure a final product that was safe and ran well.

From a training standpoint alone, this is immediately impractical, as the necessary knowledge and skills would likely take years to impart. There would also be inefficiencies connected with creating a work station for a single car builder and time lost moving the car and worker between work stations for various tasks.

Instead, the job of building a car is broken out into sequential components, and these small, specific jobs are given to a single worker or group of workers.

Instead of completing all tasks, a worker may now only place a single fender, for example, on every vehicle that comes through her workstation. The range of knowledge and skill ensures fast training and comparatively short times to gain expertise. The limited and repetitive nature of the subtasks a single worker undertakes may prove boring and lead to distraction and low productivity.

An overly specialized production line could also create bottlenecks without sufficient supplies of workers. Cross-training is often a practical solution to both issues, keeping specialized workers engaged with a variety of tasks, and expanding labor resources for the employer. The theory of comparative advantage suggests that nations involved in trade should specialize in producing goods for which they have a low opportunity cost — that is, regional advantages that give them a jump over competition for international trade.

For example, if a country is abundant in a certain raw material, industries that use that material might be able to operate more profitably in that country, rather than another with few natural resources that is subject to shipping costs and trade tariffs.

A country with a large labor pool and low cost of living may also be attractive to a manufacturing company to relocate to take advantage of local specialization. Dependence on a single resource could create problems that affect that resource.

For example, a country that depends heavily on a single crop could run into difficulty after a poor growing season or other issue that affects yield. Nonrenewable resources could be exhausted in the rush to exploit current demand. With degrees in Photography and Recorded Music Production, Scott spent over 20 years as an Operations Manager with Kodak before starting a second career as a freelance content creator specializing in business, accounting and tax topics.

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