In economics, specialization is described as the division of labor.
Why do we specialize?
Within the economy as a whole, the division of labor explains why even if you bake your own bread, you typically don't grow your own wheat, grind it into flour, build your own oven, make your own bread-pans and so on.
People specialize in a few skills and then take the wages that they earn from those skills to purchase the other goods and services that they desire from other specialists
He identified three reasons why the division of labor increases output
Execellent - workers who specialize on one job become much better at doing it
Efficiency- with specialization, the time that it would take to switch between jobs is eliminated
Innovation- workers who specialize on one job often invent more effective ways or new machines for doing the job
"Specialization is possible only when people are able to coordinate their production and consumption decisions with each other."
Have you ever heard of an assembly line?
Buyers and sellers freely and willingly engaging in transactions or goods and services. These are transactions that both the buyer and the seller are better off after the exchange than before it occurred.
How are specialization and voluntary exchange connected?
Specialization is the basis of trade and interdependence among individuals, cities, regions and countries
Most countries do not produce all of what they consume. Instead, they focus more heavily on producing certain products and trading with other countries.
The global economy is a network of trade and interdependence. When trade is voluntary and non-fraudulent, both parties in the trade gain.