What role does specialization play in the productivity of an economy? i need a real life example as well.

Answer

Specialization will lead to economies of scale because it will facilitate the increased output.

Explanation

When a person or many individuals specialize in one job activity, the country will have a lot of individuals being able to perform their jobs well thus increasing the output. For example countries specialize in producing the goods and services originating in the country (native goods and services) and then trade with other goods and services, thus through this specialization global trade is achieved because not all countries can be self-sustaining.

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