Specialisation in Alaska PDF

**Specialisation in Alaska** Specialisation means economies or businesses concentrate their resources in the areas that they do best, excess output is then traded. Alaska specialises in producing over one million tonnes of seafood a year Specialisation leads to increased productivity and output....

**Specialisation in Alaska** Specialisation means economies or businesses concentrate their resources in the areas that they do best, excess output is then traded. Alaska specialises in producing over one million tonnes of seafood a year Specialisation leads to increased productivity and output. This can lead to economies of scale as more resources are devoted to specialisation rather than spread out over many areas. More people are employed by the Alaskan seafood industry, than in any other Alaskan industry Output (\$12.8bn) rises and leads to economic growth, which benefits other companies. This is an external economy of scale which helps businesses as they can easily hire specialist labour for the seafood industry The Alaskan seafood industry brings in \$2.5bn in export revenue, this is an enormous contribution to the economy and taxes earned on this can help the government to reinvest in infrastructure and facilities to aid the industry further. However, specialisation can lead to over reliance on just one area, if anything happens to this area Alaska and the US could suffer China is the top export market and the 25% tariff has already damaged sales of seafood Risk and uncertainty are not spread. Should demand fall for seafood because of, for example, public concern over its environmental impact, demand will fall and have a serious impact on the Alaskan and US economy Unemployment would rise with repercussions for other businesses and the economic wellbeing of Alaska and the US The industry catches and processes enough seafood each year to feed everybody in the world at least one serving of Alaska seafood,12.9 billion servings in 2015, this could indicate that resources are being overused and with finite resources in the oceans over fishing could become an issue Whilst the seafood industry is the largest sector, minerals and ores still generates \$1,795m so there is some diversity in output. Alaska is not completely dependent on the seafood industry. This is a good thing as it means if there are any problems with one industry there is still other industries to provide employment and economic growth.