Qualification > Commerce

Economic Help!

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Jake:
Explain with examples what is meant by specialisation and diversification.[6]

I Jimmy I:
Errrmm, I can give simple explanations.
Specialisation is basically specialising into something.Meaning, a company specialises in the production of clothes , this means that the company's main focus will be on producing clothes and nothing else!!
This is done because the company may have a comparitive advantage such as reduced average costs per unit or any other reasonable explanation.

Diversification is quite the opposite.Meaning that this company will produce more than clothes to reduce the risk of having undemanded product because demand for clothes may fall and then the company will suffer greatly.

Anywayz this info is from my experience and no book. So im not 100% sure. Please check with other students.
Thank You

Name:
IJimmyI got it. its correct.
i love how you dont need to study to knw everything in economics  :P

I Jimmy I:
Thats why I like Eco and HATE Business St.
Eco. is simple, requires ur commonsense.

Name:
exactly
i never took business anyways but i would prefer eco to any other subject wether it be business or anything else  ;D

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