Answer to Question #233633 in English for ABCD

Question

Briefly describe the concept of specialisation

Explain how an increase in the demand for goods and services contributed to industrial development

Answer 1

Specialization is when a country, individual, or firm focuses on a narrow range in the production of services and goods. With time, they achieve a cost advantage in the production of these services and goods. Efficient utilization of resources is closely associated with specialization. Specialization mainly occurs during labor division where there is a breakdown of tasks. Specific roles are also associated with each job.

Industrial development occurs during economic and social change which transforms a society to a mass-production economy from an economy that is resource-based or agricultural. Industrialization usually requires scarce resources to be utilized optimally. With increase in the demand for services and goods, it called for the need for mass production. During this production, the scarce resources had to be used optimally through specialization. As a result of this, there was the setting up of manufacturing plants and industries. It resulted in more goods and services produced in minimal time and an increase in national income. Hence, demand for services and goods resulted in industrial development.