In this class, we will discuss division of labour, specialization, and exchange. 

Division of Labour, Specialization and Exchange

CONTENT

Definition of terms

Advantages and disadvantages of Division of Labour/Specialization

Limitations of the Division of Labour

Division of Labour is the breaking down of production processes into different stages so that each stage is undertaken or handled by an individual. For example, division of labour occurs in a textile factory where separate processes like spinning, weaving, and dyeing are undertaken by separate workers in each case.

Specialization is the process whereby an individual, a firm, or a country concentrates or limits its productive efforts on particular areas of production in which it has the greatest advantage over others. The principal aim of both division of Labour and specialization is to increase output at a lower cost of production.

Advantages of division of labour/ specialization

1. Greater skill and dexterity of workers

2. Increased total output

3. It saves time.

4. Less fatigue

5. It makes possible the use of machines.

6. Reduction in the cost of production, i.e., per unit cost

7. It enhances the development of technology.

Evaluation

1. Divine the term Division of Labour

2. State five advantages of the Division of Labour.

Disadvantages of division of labour/specialization

1. It makes work monotonous.

2. The use of machines reduces employment opportunities.

3. It brings about labour immobility.

4. The decline of craftsmanship.

5. The danger of increased interdependence among individuals, industries or countries.

Limitations of Division of Labour

1. The size or extent of the market i.e., the extent of demand for the particular commodity

2. The availability of Labour

3. The nature of the product being produced

4. The availability of capital, i.e., to pay the various workers involved, buy raw materials, machines, etc.

5. Government policy

Exchange

Division of Labour and specialization create a situation where people have to depend on others to get the goods and services they do not produce.

This interdependence gives rise to exchange between individuals, firms, or countries.

Evaluation

1. Define specialization.

2. Explain the difference between division of labour and specialization

3. State three limitations of the division of labour

Theory

1. State four disadvantages of specialization

2. List three limitations of the division of labour.

General evaluation

1. State the difference between industry and commerce.

2. Mention and explain five types of commercial occupations.

3. With the aid of a diagram, illustrate the scope of commerce.

4. List seven factors that delayed the development of commerce in Nigeria.

5. State seven characteristics of land as a factor of production.

In our next class, we will discuss Retail Trade. We hope you enjoyed the class.

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