Specialization Leads to Economies of Scale Once specialization occurs, resulting in economies of scale, a company is able to reduce the price for its goods or services because it costs less to make their goods or provide their services.

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Specialization acknowledges that the civilization has expanded to a level where the people are interdependent. Not everyone has the same training to survive with or without the group. Once specialization occurs, people must rely on one another to fulfill all the needs of the people.

PRODUCTION. Specialisation depends on trade and trade depends on specialisation. Specialisation leads to mass production hence the need for a market to sale the surplus. Production is the extraction and processing of raw materials into finished goods.

How does division of labor increase productivity? By dividing up the individual tasks that make up a job so that people become experts at the specific tasks; an economy can produce more with the same inputs of land, labor, and capital when each person specializes in a specific task.

What is another word for specialization?

“Specialisation” and “specialise” would be used in a British context, whereas Canadians and Americans would use “specialization” and “specialize.” This is true of many words ending in -ization or -ize: realize/realise (realization/realisation), organize/organise (organise/organisation), idolize/idolise, etc.

Specialization process starts from a single entity set and it creates a different entity set by using some different features. In Generalization, the difference and similarities between lower entities are ignored to form a higher entity. In Specialization, a higher entity is split to form lower entities.

But, in general, it’s a good idea to specialize externally first, until you’ve mastered one or two skills, while also spending some time learning either adjacent or entirely unrelated skills.

Generalization, in psychology, the tendency to respond in the same way to different but similar stimuli. For example, a dog conditioned to salivate to a tone of a particular pitch and loudness will also salivate with considerable regularity in response to tones of higher and lower pitch.