Specialization is when someone, or in this case company, becomes an expert in whatever product they produce. If a company or a person focuses on making their product efficiently, the product is more likely to be of a greater quality than a competitor's product, leading to more people buying the product.
Shortened answer:
Specialization = More $$$
There are four types of social norms that can help inform people about behavior that is considered acceptable: folkways, mores, taboos, and law. Further, social norms can vary across time, cultures, place, and even sub-group.
By saying <span>"we have probably had too good an opinion of human nature in forming our confederation" he said that, their opinion in examining and classifying the nature of human tendencies is being taken into further knowledge as to forming a certain group attribute that is the confederation.</span>