European Economics: Specialization and Trade

Learn about specialization and trade! Understand imports, exports, and why countries specialize.

Fill in the blanks with the choices from the word bank. Be sure to reread the passage to make sure it makes sense. When workers in a factory are working on different jobs, specialization occurs. There are workers who buy the raw materials and supplies. Other workers run the machinery to create the products. There may be people who specialize in keeping up with the money, paying the bills and salaries. Other workers are involved in selling the product and delivering it. Within a business, no one person can know how to do all the jobs. The factory runs best when each person learns his or her part well. Those employees can get faster at doing their jobs and learn ways to handle problems and work more efficiently. Fill in the blanks with the choices from the word bank. Be sure to reread the passage to make sure it makes sense. Work divided in this way is described as division of labor. If your parent enjoys sewing, they do not make the cloth they use to sew the clothes. They also do not make the sewing machine they use. Other people make the cloth and sewing machine that your parent purchases to use. Then your parent uses their own skills to sew the clothes. Fill in the blanks with the choices from the word bank. Be sure to reread the passage to make sure it makes sense. Germany specializes in making vehicle parts, aircraft, and helicopters, which it exports to other countries. The United Kingdom makes and exports machinery and vehicles. Russia is still struggling to compete in the world market but does export oil, coal, natural gas, and other mineral resources. Specialization often results in being able to make products more cheaply and efficiently, which is beneficial for both the exporting and importing countries. Match the following terms. import Items a country buys from another country exports Items a country sells to another country specialization a particular area which someone (or a country) concentrates on or is an expert in beneficial good or good for you efficient working in a well-organized and competent way Which is an example of specialization? A country imports all the goods it needs and does not export any. A business makes multiple goods for sale. A factory makes one product extremely well and exports it. A chef enjoys experimenting with several different recipes. In a few sentences, explain why a country would want to specialize in just a few industries? For this one, you have to type your answer. Why do you think economic specialization would make countries have to trade with one another? You can type or record you answer.