1. Specialisation and the Division of Labour AS Economics

2. Lesson Objectives  AO1 Define what specialisation is and the division of labour  AO1 Be able to explain what is meant by specialisation and the division of labour  AO2 Describe the advantages and disadvantages of specialisation and the division of labour

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

4. 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

5. Can’t be an expert at all things…

6. Companies Who Specialise…

7. 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.

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

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

10. 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)

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

12. 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)

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

14. 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) Identify another factor that could disrupt the production of tobacco (2) b) Discuss one factor that could reduce demand for tobacco in the future. (5)

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

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

17. 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)

18. 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 60s, 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) Explain one benefit a patient may receive from visiting the South Surgery (2) b) Explain one benefit a patient may receive from visiting the North Surgery (2)

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

20. Check your understanding  Northampton used to be well known for shoemaking. Since the late 1950s, 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) What are the risks of a person specialising in shoemaking in Northampton? (4) b) What does the passage suggest about the ability of workers in Northampton to transfer their skills? (5)

21. Lesson Objectives  AO1 Define what specialisation is and the division of labour  AO1 Be able to explain what is meant by specialisation and the division of labour  AO2 Describe the advantages and disadvantages of specialisation and the division of labour

22. 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