Specialization

Front 1

Def of specialisation and example

Back 1

This is when a country concentrates at producing a particular product at which they are best at producing.

Japan specialises in cars

Front 2

Advantages of specialisation 4

Back 2

1) Reductuon of cost due to higher productivity

2) International competitiveness due to low cost of production, low prices, higher quality

3) Increase in output. Facilitate economic growth, employment, increase in living standards

4) Transfer of technology. Specialization opens up trade which means a there will be exchange of ideas, product, information and knowledge

Front 3

Disadvantages of specialisation 4

Back 3

1) over explotatuon and exhaustion of a particular resources

2) dependancy on other countries for product that they do not produce

3) trade restrictions which are plaaced on products that are exchanged between countries. This reduces the amount of goods available to consumers and make them expensive

4) fall in demand for a particular product of country maY mean that a country maY lose a great amount of revenue that can lead to unemployment and slow down economic growth. For example the introduction of cheaper new technology by China to the USA leads to a fall in the demand for the technology in the USA

Front 4

Def of absolutive advantage

Back 4

According to absolute advantage when a country has the ability to price more if a product that another country with the same amount of resources it can produce

Front 5

Explain absolute advantage

Back 5

This means given the same amounts resources, if one country ncan produce more of a product that another country, it is said you have absolute advantage in producing that particular good

Front 6

Name the two principles of specialisation

Back 6

1) Absolute advantage

2) Comparative advantage