Specialization was first established by Adam Smith's theory, absolute advantage. It is a production method in which a company focuses on a limited scope of products or services in order to achieve production efficiency within the entire business system. Many countries, for example, specialize in the production of goods and services originating in their part of the world. On the other hand, incomplete specialization still exists in modern theory, a result of the pure theory of international trade based on two-factor, two-good Heckscher-Ohlin models. There are factors that make specialization imperfect in practice; such as endogenous growth, transportation costs, immobility and interdependence. Economic interdependence is a consequence of specialization. Whitman, cited by Baldwin, expands further and proposes that economic interdependence should also involve the degree of sensitivity of a country's economic behavior to the policies and development of countries outside its borders. However, empirical evidence to support the latter definition is much harder to find, given its ambiguity. Although specialization will confer comparative advantage, the ability of a firm or individual to produce goods or services at a lower opportunity cost than other firms or individuals, economic interdependence will scare some countries into specializing in something and to dependently import something else from the country. other countries. In conclusion, interdependence will contribute to imperfect specialization in international trade. These factors are clearly represented as factors causing incomplete specialization. There is so much research to support these factors as discussed in this essay. Furthermore, the example can be found recently among the countries. However, the factors contributing to imperfect specialization in international trade in this essay are only the majority. There are many smaller factors that may not have been found or may be too complicated to prove. Some factors may relate to other factors and it is impossible to extract them from each
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