General Certificate of Secondary Education (GCSE) Economics Practice Exam 2025 - Free GCSE Economics Practice Questions and Study Guide

High specialization often leads to overdependence on specific processes, resources, or workers. When a workforce becomes highly specialized, they may be trained to perform a narrow set of tasks exceptionally well, which can create vulnerabilities in a system. For instance, if one part of the production process fails or if a specialized worker is unavailable, it can halt the entire operation, significantly impacting productivity.

This risk is contrasted with other aspects of specialization. While improved efficiency and lower costs due to economies of scale can be achieved, these benefits may be undermined if the system becomes too reliant on the specialized elements. Thus, although high specialization aims to boost productivity, it can simultaneously create a situation where the entire operation is at risk due to its reliance on narrowly defined processes and skills.