[Answer] What does the process of specialization do for an economy?

Answer: it makes it more efficient
What does the process of specialization do for an economy?

• Departmentalization refers to the process of grouping activities into departments • Division of labour the specialization of cooperative labour in specific circumscribed tasks and roles • Economic specialization the separation of tasks within an economy

Departmentalization by process on the other hand seeks to benefit from the advantages that are found in high specialization and tends to be very efficient in some instances. A high degree of specialization leads to the development of proficiency and professional competence as well as it enables and implies the development of centralized control functions.

Information industry – Wikipedia

Specialization – Wikipedia

Specialization – Wikipedia

Departmentalization – Wikipedia

Sun Nov 18 2001 13:30:00 GMT-0500 (Eastern Standard Time) · Specialization: a private business has the ability to focus all relevant human and financial resources onto specific functions. A state-owned firm does not have the necessary resources to specialize its goods and services as a result of the general products provided to the greatest number of people in the population .

In other words the specialization of these industries in an economy is neither production of information nor sophisticated decision-making. Instead this segment serves as an infrastructure for those activities making production of information and decision-making services will be a lot less efficient.

Thu Jan 29 2004 13:30:00 GMT-0500 (Eastern Standard Time) · According to Smith the division of labor is efficient for three reasons: (a) occupational specialization (b) savings from not changing tasks and (c) machines augmenting human labor. Occupational specialization leads to increased productivity and distinct skill.

De-industrialization is a process …

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