Division of Labour is Limited by the Extent of the Market

This is so obvious. If, for instance, a shoemaker is able to dispose of one pair of shoes in six months, it will look foolish for him to employ half a dozen persons on the making of soles, half a dozen on the making of uppers. and another six persons in joining them. There must be adequate demand for his product before he can adopt such methods. Division of labour implies large – scale production, and it is meaningless to produce more in the absence of a sufficient market for goods. The limiting factor for the introduction and extension of labour is, therefore, the existence of a wide market.

Market also Depends on Division of Labour. Under division of labour, production is done on a large scale. which means cheaper production. When goods are cheap, more people will buy them. Thus, the boundaries of the market are extended by division of labour.

Hence, division of labour and the market are interdependent  But it is m~re true to say that division of labour is limited by the extent of the market than that the extent of the market depends on division of labour.


Localisation of Industries

Territorial division of labour is also called localisation of industries, By localisation we mean the establishment of an industry in a certain place or a origin. A certain town or a territory comes to specialist in a certain place or a region. A certain town or a territory comes to specialist in a certain industry. Indian jute industry is centered in Bengal, iron and steel industry in Bihar, sugar industry in U.P. and Bihar. cotton mill industry in Bombay, and so on. For instances of localisation in State towns. we may mention hosiery industry of Ludhiana (Punjab), bangles in Hyderabad (U.P.) silk manufactures in Balthazar (Bihar).

[av_button label='Get Any Economics Assignment Solved for US$ 55' link='manually,http://economicskey.com/buy-now' link_target='' color='red' custom_bg='#444444' custom_font='#ffffff' size='large' position='center' icon_select='yes' icon='ue859' font='entypo-fontello']

Share This