Specialization

Efficiency is increased when individuals, firms, and nations produce the goods and services at which they are best, leaving the production of other goods to others. Example: Because bananas and apples generally require different climates for proper growth, the best results occur when the two products are grown in the regions that are best suited for the particular crop. Trade means that people can eat both types of food even if they produce only one type. Individuals specialize in jobs they do best, too.