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specialization (D2, LO)<br />1 Subdivision Or DIVISION OF LABOUR.<br /> 2 A reduction in the number of economic activities of a country with a view to reducing costs and maximizing output. One of the major examples of specialization is in international t rade, first justified by the doctrine of absolute advantage and subsequently by CDMPARATIVE advantage. Advocates of specialization always point out the general increase of real incomes which results from factors of production being employed in their best uses.

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