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Based on the concept of comparative advantage, a country will tend to specialize in fields where they have an advantage relative to other countries. Countries such as Australia have vast amounts of Natural Resources, so will tend to specialize in exporting mineral ore. China, with its vast labour pool will tend to specialize in manufacturing and the U.S with its vast R&D investment will tend to be the one who owns the intellectual property and patents. Though the examples given are simplistic in nature, they show that by specialising in areas where countries have an advantage they are on-the-whole better-off compared to attempting to do all the tasks; to do so would be inefficient. Hence, by allowing specialization countries are able to have a level of consumption or production greater than if trade was not conducted.
What else can I help you with?
How can specialization benefit both buyers and sellers in a free market economy?
In a free market economy, specialization benefits buyers by meeting individual needs. Specialization benefit sellers by creating a sector that is not profitable for big business.
How do specialization and trade benefits both trading partners?
specialization gives countries resources to other countries which creates an entry into the global trade.
Ask us anythingThe existence of an international division of labor among countries enables those countries to have what?
Specialized production
What are benefit of managerial specialization?
Greater efficiency; increased productivity; lower unit costs
What type of practice encourages trade between countries?
Specialization
How can specialization benefit two separate and diversly endowed geographic regions?
Specialization contributes to increased opportunities for trade. Specialization will make the two countries mutually dependent upon each other, for goods they don't produce themselves.
What is the benefit of specialization?
it leads to an increase in output
How can specialization benefit both buyers and sellers in a free market economy?
In a free market economy, specialization benefits buyers by meeting individual needs. Specialization benefit sellers by creating a sector that is not profitable for big business.
What is the benefit of being multicelluar?
Longer Life Larger specialization
How does specialization enhance Canada's and Australia's ability to trade with other countries?
Canada and Australia benefit greatly from having specialization in their products and services in regards to trade. The specialization allowed Canada and Australia to trade because they have highly skilled and trained labor force. This thus allows them to easily trade and communicate amongst themselves.
How do specialization and trade benefits both trading partners?
specialization gives countries resources to other countries which creates an entry into the global trade.
How does lavor specialization help a society?
Labor specialization helps society because everyone is expected to perform labor that can benefit other people.
Ask us anythingThe existence of an international division of labor among countries enables those countries to have what?
Specialized production
What are benefit of managerial specialization?
Greater efficiency; increased productivity; lower unit costs
How does specialization by workers benefit firms employing the?
Please rewrite. You need to finish your thoughts.
What type of practice encourages trade between countries?
Specialization
How does specialization by workers benefit the firm's employing them?
Workers who specialize become more efficient and thereby increase productivity.
