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  1. Introduction to Commerce | Week 1
    3 Topics
    2 Quizzes
  2. E-Commerce | Week 2
    3 Topics
  3. The Barter System | Week 3
    1 Topic
    1 Quiz
  4. Occupation | Week 4
    1 Topic
  5. Services | Week 5
    2 Topics
    1 Quiz
  6. Production, Division of Labour, Specialization & Exchange I | Week 6
    3 Topics
  7. Production, Division of Labour, Specialization & Exchange II | Week 7
    2 Topics
    1 Quiz
  8. Retail Trade / Home Trade | Week 8
    5 Topics
  9. Small Scale Retailing | Week 9
    6 Topics
  10. Large Scale Retailing | Week 10
    9 Topics
    1 Quiz

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Advantages of Division of Labour and Specialization

1. It Increases Outputs: Division labour and specialization brings about an increase in productivity at any point in time.

2. It Saves Time: The time that would have been wasted on the vigorous production processes are saved.

3. It Reduces Fatigue: It reduces unnecessary stress and the danger of tiredness since each individual will concentrate on a particular production process.

4. It Increase Skill and Dexterity: As individuals, firms or countries specialize in the production of a certain product(s) or service, their skills and experiences improve thereby leading to an increase in output.

5. It Encourages Greater Use of Machine: Division of labour and specialization encourage the use of machines at different stages.

6. It Encourages Cost Effective: There is lower cost per unit of output because the division of labour and specialization increase output and save time leading to cost reduction on the overall output.

7. It Leads to Specialization: Specialization is encouraged when an individual, firm or country concentrate on the production of certain line of goods or profession which it can effectively perform.

8. It Encourages Creativity and Innovation: Firms individual or countries embark on more researches in order to develop new ideas, technologies and production techniques toward the increase in output.

Disadvantages of Division of Labour and Specialization

Despite some benefits derived from division of labour, there are some limitations also:

1. There is Monotony of Work: work that is repeated on daily basis sometimes become uninteresting, boring and monotonous.

2. Decline in Craftsmanship: The use of machines has dampened the initiatives of workers and even reduced their vocational skills in creating or production of goods due to use of machines.

3. Interdependency is Encourage: It poses a danger of an increase in interdependence among individuals, firms, and countries on the production or consumption of certain goods if a particular individual, firm, or country is deficient in carrying out production processes. This is commonly found in industries where workers depend on one another. The absence of a worker may cause a production break down or stoppage.

4. Mobility of Labour is Affected: The long stay of a worker in a particular stage of production makes it difficult to change or move to another job.

5. It Encourages Over Production:- Increase in output is the order of the day, because each worker concentrates on the production of certain goods which may lead to excessive production thereby encouraging wastage, spoilage and dumping of certain products,

6. The Application of Division of Labour is Limited: Not all economic activities can make use of the division of labour in production processes. For instance, some jobs such as barbing, driving, etc do not require the application, of division of labour since they can be carried out by one person.

Evaluation Questions

  1. What is production?
  2. With the aid of a diagram, classify production
  3. Explain your understanding of division of labour
  4. State five advantages of division of labour
  5. What is specialization and how does it relate to division of labour?


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