Specialization is the separation of jobs, activities and processes so that every individual concentrates on what they can do best. Name and explain four major such divisions.

Trade divisions (professions division) –  A person concentrates on the professional trade or service e.g. teaching , fishing.


Process division – Although in the same trade different people have their work being divided into a number of stages, activities or processes each being undertaken by a different group of people.


Regional or Territorial specialization – Two or more firms on the same product to complete the production process e.g. firm may undertake the processing of cotton whereas as B does the  packaging.


Nationalized specialization – Based on soils , climates , skills and costs of production. Applied in International trade whereas a country concentrates on the production of a particular commodity or supply of service e.g. Kenya is known for coffee production.

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