Explain why geographic specialization occurs
Geographic specialization refers to the concept that certain areas, based upon natural resources, infrastructure, demographics, and policy, are able to produce goods more efficiently than another area. Competition rewards efficient operations. The more efficient and effective a company is able to perform a task they more competitive that company becomes. So based on things like natural resources (e.g., timber for furniture production) certain areas are likely to specialize in certain production and then buy goods from another location that cannot not be efficiently produced locally.
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