TOPIC:

SPECIALISATION, EXCHANGE AND

MONEY
 OBJECTIVE(S):
BY THE END OF THE LESSON THE LEARNER
WILL BE ABLE TO:
1. EXAMINE THE EFFECTS OF
SPECIALISATION
2. EXPLORE THE IMPORTANCE OF TRADE
AND MONEY IN ENCOURAGING
SPECIALISATION
Specialisation means the concentration on particular
products or task.
 Specialisation Of Countries
1. Uneven distribution of resources
2. Differences in soil and climate conditions
3. Differences in skill, intelligence and experience
 Specialisation Of Firms
1. Nature of resources available
2. Location and the demand in that location
 Specialisation Of Workers
This is also referred to as division of labour.
Division of labour is when workers specialize in
particular tasks.
 Advantages Of Specialisation Of
Workers
1. Increase in output at a lower cost
2. Learning becomes faster
3. Specialisation
4. Saves time
5. Invention of specialised machines/ equipments
6. Earn high wages
 Disadvantages Of Specialisation Of Workers
1. Leads to higher unit cost
2. Leads to boredom
3. Danger posed by machines/equipments
4. May encounter the problem of getting another job
Money is an item which is generally acceptable as a
means of payment.
Money is said to act as a medium of exchange.
Products are exchange for money and that money is
used to buy other products.
 The Function Of Money
1. Medium of exchange
2. Act as a store of value
3. A unit of account
4. Act as a standard for deferred payment
Types Of Money
1. Coins
2. Notes
3. Bank accounts
Characteristics Of Money
1. Generally acceptable
2. Limited in supply
3. Durable
4. Portable
5. Homogeneous
6. Divisible
7. Recognisable