Specialization

What is Specialization?

Specialization is the concentration of individuals, firms, or states on economic activity in producing a limited variety of goods, to gain a greater degree of efficiency.

It is the concentration of workers, in the performance of a particular job. It is also the performance of a simple job, in which an individual firm, state, or nation has a comparative advantage.

For example, Mr Akinosun is a medical doctor, LG produces electronic gadgets, etc. Specialization refers to the dedication of one’s entire time to the performance of a single duty, the production of particular goods.

Specialization means the acquisition of skills in the production processes. It is the act of acquiring a special skill and concentrating, on the performance of a task, in which a person specializes.

Specialization of labour is the concentration of labour on the performance of a task.

“Specialization leads to division of labour”, as a result of this people use the two concepts interchangeably.