How does specialization improve efficiency?

Answer 1

Generally yes. But there is an optimal level of specialisation. Here are a few examples.

Greater specialisation in production by countries or regions leads to more transportation of goods. So the optimal level of specialisation is determined by trading off the gains from specialisation again the increase in transport costs.

Greater specialisation by a person reduces the range of employment opportunities open to them.

Greater specialisation by firm or a country in sourcing inputs or raw materials increases the risk of a shortage if the single supplier is unable to meet requirements. Some firms like to diversify their suppliers for this reason, even if the cost is higher.

Answer 2

If you are talking about International trade, the country gains absolute advantage in producing good x, bcoz it uses less resources.
When country a and b sticks to their own pecialization in the goods they have the most comparative advantage over its production, then both a & b can gain by mutually trading their specialized goods to another. Comparative advantage means the one who produces at lower opporrtunity costs, and this makes the home industry more efficient.

Answer 3

If there are a team of people, or something, and they are each the best at what they do instead of them all being average at something, then it will be easier to get the job done. It will improve efficiency because of each of them being great, it is easier on the next one at finishing the task.