Question

Which of the following is an example of specialization?

A. Because of the high cost of labor, American companies have
stopped most steel production and now import steel from other
countries.
B. To protect its workers, the German government requires that
foreign workers obtain visas before they can work in Germany.
C. German automobile manufacturers have built car plants in the
United States.
D. The United States exports farm goods.

Answer 1

An example of specialization is;

A. Because of the high cost of labor, American companies have stopped most steel production and now import steel from other countries

Step-by-step explanation:

Specialization in business is the strategy to focus on the production of a limited number of products or services based on comparative advantage, availability of resources and to improve efficiency, with the outcome of specialization include maximum possible productivity, advanced expertise, capacity for leadership in a field

The capital and labor intensive production of steel will make steel production at a location where labor cost is high less profitable than making the steel at a low labor cost location

The location of lower labor steel production that produces steel, is specialized in steel production, when it now supply steel to other locations where it costs less to buy than to produce steels.