The factors that determine whether specialization in production will be partial or complete include differing tastes for products, increasing production costs, and the fact that not all goods and services can be traded internationally.

Constant costs occur when resources are completely adaptable to alternative uses. Under increasing cost conditions, a nation must sacrifice more and more of one product to produce each additional unit of another product. Increasing costs occur when resources are not completely adaptable to alternative uses.

Complete specialization. Definition. The utilization of all of a nation’s resources in the production of only one commodity with trade. This usually occurs under constant costs.

The reason for incomplete specialization under increasing costs is that as each nation specializes in the production of the commodity of its comparative advantage, the relative commodity price in each nation moves toward each other (i.e., become less unequal) until they are identical in both nations.

Specialization by Process: This the means by which a production process is divided into different stages and each worker or firm now concentrate on only aspect of the production. In a bakery for instance; a person may specialize in the mixing of flour.

Job specialization is a process that occurs when employees gain knowledge, education and experience in a specific area of expertise. The importance of job specialization in the modern-day workforce is that it helps to fulfill the need for skilled workers.

Job specialization becomes more necessary the larger an organization is. When organization uses job specialization, every worker is an expert to some degree. Employees are able to refine the task for which they are responsible, resulting in increased efficiency and increased production.