1. SECTION A: THE MARKET SYSTEM
Part 3 The labour market: an example of a market in a mixed economy
Chapter 13: The division of labour
Edexcel International GCSE Economics

2. Getting Started…
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

3. Labour
The working population – people available for work in a country.
Is there an abundance of labour in many countries?
Current unemployment rates
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

4. Labour vs other resources
Why is labour the hardest resource to manage?
People vs Robots
People have complex needs, are emotional, can be disruptive, can be inconsistent.
People need breaks, holidays, get tired, get ill, leave, have children, retire.
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

5. Specialisation and the division of labour
Firms specialise in a narrow range of products
Firms have specialised departments
Countries/regions are known for specialisation (Zurich – finance, Basel – pharmaceuticals, Geneva – NGOs)
What products do you associate with certain countries?
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

6. Specialisation and the division of labour
South Africa - Gold
China – manufactured goods
India/Bangladesh – textiles
UK – good music, excellent teachers
Saudi Arabia – oil
Ivory Coast, Ghana – cocoa
Italy – fashion
The Netherlands - tulips
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

7. Specialisation and the division of labour
Division of labour - breaking down the production process into small parts with each worker being allocated a specific task.
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

8. Question 1 – Regional specialisation – pg 54
(a) Valencia is the only region in Figure 2 that produces toys. (b) The Rioja region specialises in the production of food and wine. This means that most people in the area will be farmers or wine producers. People may be employed as labourers on farms or in vineyards. A minority are likely to be specialists, such as tractor drivers or tasters and carry out some specialised tasks for farm owners and winemakers. (c) The main reason why the Rioja region only specialises in the production of food and wine is because the resources there, land in particular, are favourable for such production. The soil type and climate may be very suitable for growing crops and producing wine. Another reason may be that the region is not able to produce anything else. It may be starved of the necessary resources, to produce cars, for example.
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

9. Division of labour - ADVANTAGES
For the worker
Become an expert – practice makes perfect
Become more employable
Highly skilled = more money
Continue to develop skills
Job satisfaction if working in a highly-skilled profession.
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

10. Division of labour - DISADVANTAGES
For the worker
BOOOOOORRRRRRIIIIIIINNNNGGGGG
Very repetitive, can require little skill
Risk of unemployment
automated production using machines, robots.
Reduced demand for that skill
UK – shipbuilding, mining, textile production
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

11. Division of labour - DISADVANTAGES
For the firm
Bored workers can...
be poorly motivated, produce poor quality work
have poor punctuality, attendance
leave the firm (high staff turnover)
become alienated, try and avoid work
This all reduces productivity and can affect profitability.
One stage of production having problems can produce a knock-on effect to other stages (Interdependence)
Lack of flexibility – if a highly-specialised worker is absent or leaves there might be no one to replace them.
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

12. Motivation How can workers be kept motivated?
Creative a Positive Work Environment
Set Goals
Provide Incentives
Recognize Achievements
Share Profits
Ask for employee Input
Provide Professional Enrichment
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

13. Economics in practice – AF Devereux
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

14. Chapter Review: ActiveBook
Chapter 13 quiz
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

15. Key words – Resolving scarcity
Division of labour
Specialisation
Working population
Add these to your Key words glossary and learn them!!
SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour