Back

International Specialization | O Level Economics 2281 & IGCSE Economics 0455 | Detailed Free Notes To Score An A Star (A*)

Views 0
  • Specialization
    • It means when the entire efforts of the nation are focused on some products that they can make very efficiently
    • As a result, they have the ability to become better than other countries in its production.
  • Absolute advantage
    • One product being produced more efficiently than others by one country
    • Using the same amount of resources or with fewer resources
  • Comparative Advantage
    • It can produce one good at a lower opportunity cost than another country.
    • Per good opportunity cost considered as well.
  • Benefits of International Specialization
    • Economies of scale and efficiency can be achieved by specialization
      • Output can be produced at reduced costs
    • Job Creation will occur as more output occurs and more investment in the industry
      • Skilled labor may be required
    • More international trade occurs
    • Market is wider because an international brand can be created in certain products
    • Consumer gets the best choices and the highest incentives. They can get cheap products at a great quality.
  • Problems of International Specialization
    • It creates structural unemployment which is where jobs are lost because a structural change occurs in the types of industry being made.
    • Resources may get over-exploited to produce more of the specialized products
    • If foreign competition occurs and the country is highly dependent on a few products, then it can face problems
    • Over-specialization can occur and dependence on a small range of products may occur. Also all other products may have to imported then.
    • Strategic issues may occur as vital goods and services may be imported form other countries. So problems with the other country can take away basic necessities.
Hunain Zia

Hunain Zia has previously achieved considerable success in the high-school educational stream, gaining a massive 154 Total A Grades and 7 Major Distinctions, a process in which he broke/ set 11 different world records, including the most A grades ever achieved, most subjects ever appeared in, most distinctions, gaining distinctions across two separate boards (Pearson Edexcel and CAIE) within the same year/ ever, and even 19 hours of constant examination. All records stand intact today. Hunain pursued his Honors Accounting Degree from the prestigious Bentley University, and then completed an LLB (in Honors) from University of London. Currently, he manages multiple social and commercial projects, has founded digital streams and works tirelessly in the education sector.

Educate A Change focuses on truly bringing change in the educational sector worldwide. All our courses are designed to ensure success, and provide complete preparation without requiring any other external material. Therefore, it takes away the expense of academies, books, past paper compilations and other miscellaneous items. Instead, by just the courses we offer, the student can prepare fully for the best grades in their CAIEs, Edexcel and other high-school exams. The earnings from our course-sales are invested in social projects and growing the free educational activities of Educate A Change.