Specialization and Division of Labor

We've already learned about trade, and this leads nicely into the concept of specialization. This is something that can be done by an individual, a company, or even an entire country, by focusing on a few skills, or the production of a certain range of goods and services. This is related to trade because when many entities specialize in this manner, they will rely on trade in order to satisfy the rest of their needs. As it turns out, specialization is a great way to maximize efficiency and productivity in the use of land, labor, and capital, so let's learn more about this concept now!