Question

In about a page discuss about " Division of Labor " in our society and in microeconomics perspectives and also in the world economy.

Answer 1

Labor is the physical or mental input which is contributed towards the effective implementation of a production process. Labor is considered to be the most important factor of production. It is the labor, which drives the other factors of production and simulates them to an effective contribution thereby leading to production process being implemented. Labor is divided in to various categories or classes which work according to their divided role or functionality. Let us discuss the caused and effects of this division of labor in the economic development of our society and towards the overall impact on the world economy.

                           Various individuals and resources have different skills and expertise in their domain of work. Hence, all individuals and resources cannot be put to work on the same role or for the same output production. It becomes a liability if the allocation of resources or individuals (i.e. labor) is done irrespective of their skill set or capability. Thus it becomes impediment that labor force is divided in to various groups or categories according to their skill set or role or capability. This division of labor ensures that the optimum allocation of resources are possible in an environment and further this results in to an effective and optimal output productivity. In our society, we see various types of labor force working as per their skill set. For e.g. a cobbler does his cobbling, a welder does welding, a businessman works in business, a driver drives vehicles etc. Here we must note that if their work were intermixed, then none of the works could be completed with perfection. It is the division of labor that maximizes their productivity and brings out the best of each type of labor. When an effective labor force works optimally, the production process gets better and the output is maximum. This results in to the society starting to benefit from this output production.

                          Similarly, when different societies are optimally efficient and produce the best results and output, a nation’s economy becomes self-reliant and self-sufficient. Such a nation is more efficient in producing optimally produced goods and its resources are well versed with their labor efficiency. This efficiency is resulted from a nation’s optimal distribution of its labor force. When all the nations start optimally utilizing its labor force, they become more economically vibrant and are able to deal with uncertainties. This helps the nations to cope better with their balance of trade and the economy becomes highly stable. When the economy is stable and efficiently growing, the global development index is achieved and it grows at a consistent rate. This global development index has not been achieved yet, however, if we can optimally utilize our labor factor and result in to a better economy, the day is not far, when we can achieve this feat.