Workers specializing in producing a good or service
SingersCooksSportsmanActress/movie director
Specializing in a sub-process in the production of a good
Hair Saloon
Hair washing Hair cutting,Hair dyeing
In a McDonald restaurant
Manager: for planning & managementCooks: producing
hamburger, potato slices,Receptionist: Welcome/assist customers
Salesperson : receiving orders from customersCleaners: cleaning
Different countries specialize in producing different
products
Japan : car productionUSA: airplane productionSaudi Arabia: oil
production
Different districts specialize in producing different
products/services
US exampleCalifornia (fruit growing)Detroit (car
manufacturing)Silicon Valley (IT industries)
Choosing the most suitable person for the jobPractices makes
perfectSaves time in training labourSaves time in changing to other
stages of productionStimulate use of machines (mechanization)
Raising labour productivityEconomy of capital (make full use of
machines and saves resources from producing capital goods) Raising
living standard more leisuregreater world output
Work becomes dull and monotonousOver interdependence among
stages of production causes disruptionDecline /Loss of
craftsmanshipGreater risk of unemploymentHighly standardized
products (limited varieties and choice for consumers)
