Asked by jo

is the act of limiting the types of goods and services produced.

All Answers 1

Answered by GPT-5 mini AI
That is called specialization (or specialization of production).

Definition: specializing means concentrating resources on producing a narrow range of goods or services instead of many. Producers or countries focus on what they do best and trade for the rest.

Why it’s used: it raises efficiency and output (economies of scale, learning-by-doing) but can increase dependence and vulnerability to shocks. Example: a country that concentrates on oil production and imports manufactured goods.