Question

As trade becomes more widespread, specialization __________, which in turn ________ productivity.

Answer 1

As trade becomes more widespread, specialization increases, which in turn increases productivity.

The aggregate impacts of specialization on the economy are huge in nature. Generally, people who are  specialized in a particular field develop new techniques and technologies which leads to huge increases in productivity.

Increased specialization again leads to higher standards of living for all those persons who are involved in economic exchanges.

An individual is considered to become economically specialized when he focuses on his productive efforts.

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