Definition
- Specialisation
- Specialisation is when a person, firm, region or country concentrates on the tasks or products it is best suited to.
- Not to be confused with: Division of labour
- The division of labour is splitting the production of a good or service into separate tasks, each done by different workers.
Example
Can you think of a workplace where splitting up the jobs would speed things up?
A café has three staff. If each of them takes orders, makes coffee and clears tables, they serve 60 customers an hour. If one runs the till, one works the machine all day and one clears, the barista gets quicker with every drink, nobody wastes time switching jobs, and the same three people serve 90 an hour: half as many again, with no extra staff.
Test yourself
What is the difference between specialisation and division of labour?
Specialisation can happen at any scale, even a whole country; the division of labour happens inside one production process.
Learn it properly: the module
Also in: Why countries trade