Specialisation: It is the tendency of people to concentrate on what they do best.
Specialisation takes place in a number of ways: by region, by country, by city, by factory and industry, by an individual.
Specialisation in workplace is specialisation by process.
Division of labour: It is breaking down a productive task into small portions and placing each portion under an individual so that each individual performs a different portion of the actual task. It allows a task to be completed quickly.
Specialisation allows manufacturers to take advantage of economies of scale.
Comparative advantage: The concept of countries specialising in producing one particular line of goods in which it is most efficient. It can trade them to buy the goods and services it needs but is unable to produce at home.
Commerce: It is concerned with distribution of goods and services .It is not concerned with producing goods but with providing services which make it easy to exchange goods and services. It is trade and aids to trade.Examples: Banking, Retailing, Transport, Advertising etc.
Aids to trade: Commercial services that help trade to function.
Industry,Commerce and Direct services are interdependent in the following ways:
1. Industry needs commercial activity and direct service to function properly.
2.Commercial activity would be meaningless if goods and services were not produced.
3.Countries are becoming interdependent.They rely on each other for raw material and modified goods.This is happening due to improved communication and transport facilities and the development of a worldwide financial system.
Specialisation takes place in a number of ways: by region, by country, by city, by factory and industry, by an individual.
Specialisation in workplace is specialisation by process.
Division of labour: It is breaking down a productive task into small portions and placing each portion under an individual so that each individual performs a different portion of the actual task. It allows a task to be completed quickly.
Specialisation allows manufacturers to take advantage of economies of scale.
Comparative advantage: The concept of countries specialising in producing one particular line of goods in which it is most efficient. It can trade them to buy the goods and services it needs but is unable to produce at home.
Commerce: It is concerned with distribution of goods and services .It is not concerned with producing goods but with providing services which make it easy to exchange goods and services. It is trade and aids to trade.Examples: Banking, Retailing, Transport, Advertising etc.
Aids to trade: Commercial services that help trade to function.
Industry,Commerce and Direct services are interdependent in the following ways:
1. Industry needs commercial activity and direct service to function properly.
2.Commercial activity would be meaningless if goods and services were not produced.
3.Countries are becoming interdependent.They rely on each other for raw material and modified goods.This is happening due to improved communication and transport facilities and the development of a worldwide financial system.
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