Chapter 32, Problem aFCT

To determine

Why increased specialization in specific agricultural products has accompanied growth in African exports of those products?

Concept introduction:

Specialization is a method of production where a business, area or economy focuses on the production of a limited scope of products or services to gain greater degrees of productive efficiency within an overall system.

Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade for other goods and services. This specialization is therefore the basis of global trade. It also means that the opportunity cost of production is lower, that is globally more goods are produced and prices are lower.