Specialisation and the Division of Labour AS Economics

Lesson Objectives AO 1 Define what specialisation is and the division of labour AO 1 Be able to explain what is meant by specialisation and the division of labour AO 2 Describe the advantages and disadvantages of specialisation and the division of labour

Overview Examine the meaning, benefits and risks of specialisation and compare the difference between domestic and international trade

How many of the following do you think you could do? Program a Linux Server Design a building Win the London Marathon Do brain surgery Excavate an Egyptian pyramid Profit from the stock market

Can’t be an expert at all things… Specialisation Exchange

Companies Who Specialise… Who is the odd one out?

Specialisation This means the concentration by workers, firms, areas or countries on a particular task or a narrow range of products. It is when we concentrate on a task or product/service.

ACTIVITY – Specialisation mind map Specialisation Think of examples of specialisation (firms or countries)

A Car How many specialist roles are involved in making a car? Designers Testers Marketing Assembly Sales line

Where does specialisation occur It happens on all levels Businesses and organisations In a country (Bangladesh –textiles, Norway – oil, Ghana – Cocoa) In an area of a country (West Midlands – car assembly) In a region (Cornwall – Cornish pasties)

For Specialisation E. g. Isle of Wight – tourism Allows countries to concentrate (London – financial services) Quality Quantity Caribbean Output increases which leads to raising the material standard of living China, De Beers – Diamonds sugar countries – Indonesia, Bangladesh and Madagascar - Rice

Lets check your understanding In Madagascar rice yields per hectare increased between 2000 and 2010 without the use of chemicals. This was the result of a new technique called the System of Rice. It involves them being planted earlier, individually and not continually in water. It was developed by Henri De Laudani, an agriculture specialist, who drew on the experience of the country’s farmers. a) Identify two benefits of being able to increase rice yields without the ‘use of chemicals’. (4) b) Why are countries which have specialised in a product for some time likely to develop new techniques? (4)

Against Specialisation What if demand If costs increase: e. g. Wages and raw materials Problems meeting demand External factors e. g. Weather and disease What if materials run out? falls? Tastes can change Competitors

Lets check your understanding Tobacco is Zimbabwe’s largest export, around 30% of export earnings. In 2001 production was disrupted by war veteran invasions, farmer evictions and the destruction of seed beds on an estimated 250 of the 1, 600 commercial tobacco farms. a) b) Identify another factor that could disrupt the production of tobacco (2) Discuss one factor that could reduce demand for tobacco in the future. (5)

Division of Labour Definition: The division of labour occurs where production is broken down into many separate tasks. Division of labour raises output person as people become proficient through constant repetition of a task – “learning by doing”. What is the main benefit to the producer and consumer?

Nandos peri chips I love Chips Task: using your new understanding of specialisation and division of labour. Split the production of Nandos peri chips up into 10 different stages

Division of Labour for Higher productivity Lower costs per unit Output per worker Improved skills Training of the skill/task (contribute to production earlier) Reducing amount of equipment (just buy specific tools) Saves time (concentrate on just doing one task) Use of capital equipment (specialist machines)

Check your understanding A town has 2 doctors’ surgeries, north and south. North has 8 doctors who do not specialise. South employs one doctor who sees patients aged under 16, two who concentrate on the over 60 s, one specialising in alternative medicine, one on patients with cancer, one who concentrates on heart disease and one for male and one for female patients. a) b) Explain one benefit a patient may receive from visiting the South Surgery (2) Explain one benefit a patient may receive from visiting the North Surgery (2)

Division of Labour risks Bored Reduced flexibility (specialist teachers) Finding work alternative

Check your understanding Northampton used to be well known for shoemaking. Since the late 1950 s, however, the industry has suffered because of cheaper imports. Many have now gone out of business. However other types of industries such as Barclaycard, have moved to Northampton and unemployment remains below the national average a) b) What are the risks of a person specialising in shoemaking in Northampton? (4) What does the passage suggest about the ability of workers in Northampton to transfer their skills? (5)

Lesson Objectives AO 1 Define what specialisation is and the division of labour AO 1 Be able to explain what is meant by specialisation and the division of labour AO 2 Describe the advantages and disadvantages of specialisation and the division of labour

Specialisation, the division of labour and exchange Examples; Specialisation can occur between nations such as China producing textiles can trade for computer software developed in the USA. Also can happen with economies such as the ‘square mile’ in London’s Financial District