Disadvantages of Division of Labour

Disadvantages of Localization

• May lead to depletion/exhaustion of a country's natural resources due to over exploitation
• The absence of one specialist worker brings the whole production process to a halt
• Break down of machinery at one stage brings the entire production process to a standstill
• Makes a worker dependent on one trade only
• Encourages the use of machines leading to unemployment
• Makes a country dependent on other countries
• Brings many people together which may lead to social problems such as crimes and prostitution

Standards of Living

• Refers to a relative measure of the quality of life of people in a given community or society
• Standard of living is said to be high if majority of people in the community have access to basic needs, education, and healthcare
• Lack of access to the three is an indication of low standards of living

Factors affecting Standards of Living

• Cost of living: High cost of living denies low-income earners access to basic needs leading to low standards of living
• Access to goods and services: Scarcity of essential goods and services can contribute to low standards of living
• Availability of job opportunities: When people lack jobs, they lack a source of income hence unable to make a living leading to low standards of living
• Roads and communication network: Poorly developed roads and communication system/network prevent access to essential goods and services leading to low standards of living
• Access to social amenities: Lack of essential social amenities like schools and hospitals deny people access to education and medical services leading to low living standards
• Political stability/security: Political stability/security promotes carrying out of economic activities leading to enhanced living standards
• Per capita income: Increase in a country's per capita income can lead to improved standards of living as it will imply an increase in the average income earned by people in a country

Production

• Primary production: Involved in mining, quarry or fishing
• Secondary production: Converts raw materials into finished goods
• Tertiary production: Provides services to consumers

Specialization

• Specialization by commodity: Concentrates on production of one type of product
• Direct demand: A commodity satisfies human wants directly, its demand is known as direct demand
• Supply: The quantity of a commodity that sellers are willing and able to take to the market (offer for sale) at a particular price over a given period of time
• Law of supply: States that, other things constant, when the price of a commodity increases its supply also increases and when the price of a commodity reduces its supply also reduces
• Supply schedule: A list of the prices of a commodity against quantities supplied

Localization vs Delocalization

• Localization: Establishment of firms in a specific area or region
• Disadvantages of localization: Economic depression during times of war or calamities, leads to widespread unemployment
• Delocalization: Establishment of firms in different parts of a country
• Factors affecting delocalization of firms: Lack of adequate land in urban centers, government policy aimed at ensuring balanced regional development, availability of auxiliary services, availability of raw materials, availability of a large population, and availability of adequate labour
• Advantages of delocalization: Employment opportunities, reduces rural to urban migration, balanced regional development, and increased accessibility of produced goods

This quiz covers the negative consequences of dividing labour in production, including resource depletion, unemployment, and social problems.