Final answer:
The nature and extent of specialization that occurs between countries is influenced by factors such as firms' specific learning about specialized products, economies of scale, and dynamic comparative advantages that change over time. Geographic location and societal factors like education and skills also play important roles. Countries that adapt to these changes and capitalize on their inherent advantages can enhance their specialization and productivity.
Step-by-step explanation:
The nature and extent of specialization between countries is determined by several factors that influence productivity and comparative advantage. Contrary to older economic models suggesting that climate or geography are determinants of worker productivity, modern intra-industry trade perspectives emphasize that it is the ability of firms to engage in specific learning about specialized products and to take advantage of economies of scale that dictate productivity levels. Comparative advantage is seen as dynamic and subject to change based on skill development and how the value chain is divided amongst manufacturers. Consequently, countries must adapt to ongoing changes in comparative advantage to maintain economic growth and development.
Moreover, the specialization of a workforce in a nation is substantially influenced by their skills, talents, and educational choices, and is often informed by the geographic location. For instance, it is more feasible to specialize in wheat farming in North Dakota compared to Florida or to operate a successful tourist hotel in Florida rather than in North Dakota. This specialization enables workers to focus on areas where they have an advantage, improving overall productivity.