Specialization

Specialization is when individuals, companies, or countries focus on a specific skill, product, or industry where they have expertise or a competitive advantage. By concentrating on what they do best, they become more efficient and produce higher quality outcomes. This focus allows them to trade or share their specialized goods and services with others who have different strengths. For example, a country might specialize in producing electronics, while another specializes in agriculture. Specialization increases productivity and economic growth because resources are allocated more effectively to areas of greatest efficiency.