What role does specialization play in the productivity of an economy? I need a real life example as well.

Answer

Specialization will lead to economies of scale because it will facilitate the increased output.

Explanation

When a person or many individuals specialize in one job activity, the country will have a lot of individuals being able to perform their jobs well thus increasing the output. For example countries specialize in producing the goods and services originating in the country (native goods and services) and then trade with other goods and services, thus through this specialization global trade is achieved because not all countries can be self-sustaining.

Specialization is related to study something is depth. For example, an agronomer may be interested in studying the quality of the food cows eat. This agronomer will specialise in animal forage. He / she will take up a post - graduate course to learn more about this. Once he / she is ready, he / she will use the new knowledge to better the conditions of animal forage. This will probably affect the nutrients of the forage. The nutrients will be obtained more easily and cows will grow faster and healthier. Therefore, good quality milk may be obtained faster and with special machinery. New machinery to get nutrious forage and to milk cows will probably work faster and will use less energy. Specialised knowledge will make production more effective in terms of quality and cost. Quality will get better at lower cost.