Specialization

Specialization is an economic and production approach in which individuals, firms, or countries focus their efforts on creating specific goods or services that align with their skills, resources, or comparative advantage. By concentrating on a limited scope of production, they can improve efficiency, raise productivity levels, enhance quality, and lower overall costs through expertise and experience.

Example: For instance, a company that focuses solely on producing smartphones can refine its manufacturing techniques, benefit from economies of scale, and boost profitability through specialized knowledge and efficient resource utilization.